Should John Hancock Multifactor Large Cap ETF (JHML) Be on Your Investing Radar?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 18 2024
0mins
Should l Buy MSFT?
Source: NASDAQ.COM
Overview of JHML ETF: The John Hancock Multifactor Large Cap ETF (JHML), launched in 2015, offers broad exposure to the Large Cap Blend segment of the US equity market, with a focus on stability and lower risk through its diversified holdings, primarily in the Information Technology sector.
Performance and Comparison: As of September 2024, JHML has shown a year-to-date increase of 16.25% and a one-year increase of 25.54%, while maintaining a medium risk profile; it is compared to other ETFs like iShares Core S&P 500 ETF and SPDR S&P 500 ETF, which have lower expense ratios.
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Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 401.840
Low
500.00
Averages
631.36
High
678.00
Current: 401.840
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company that develops and supports software, services, devices, and solutions. Its Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services, spanning a variety of devices and platforms. It comprises Microsoft 365 Commercial products and cloud services; Microsoft 365 Consumer products and cloud services; LinkedIn, and Dynamics products and cloud services. The Intelligent Cloud segment consists of its public, private, and hybrid server products and cloud services. It comprises server products and cloud services, including Azure, and enterprise and partner services, including Enterprise Support Services. Its More Personal Computing segment primarily comprises Windows and Devices, including Windows OEM licensing; Gaming, including Xbox hardware and Xbox content; Search and news advertising, comprising Bing and Copilot, Microsoft News, and Microsoft Edge.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- User Growth Data: Microsoft revealed that Copilot reached 15 million paying users in its latest earnings call, reflecting a 160% year-over-year growth, although this figure appears small compared to its 450 million Microsoft 365 paid users, indicating potential market demand.
- Market Competition Analysis: While Copilot's conversion rate stands at approximately 3.3%, lower than ChatGPT's 5%, Microsoft's existing user base provides a solid opportunity for future growth through cross-selling, especially as AI tools become more mainstream.
- Revenue Potential Outlook: Should Microsoft achieve another 160% growth in users over the next year, it could generate an additional $8.6 billion in revenue, which represents nearly 3% of its projected $328 billion revenue for fiscal year 2026, highlighting Copilot's commercial value.
- Strategic Positioning and Competitive Advantage: With significant equity stakes in both OpenAI and Anthropic, Microsoft can leverage AI to enhance Microsoft 365's competitiveness, thereby maintaining its leadership in the office software market and mitigating competitive pressures in the future.
See More
Microsoft Faces Intensifying Competition in Cloud Computing
- Cloud Competition: Microsoft faces fierce competition in the cloud computing sector from Amazon and Alphabet, with Azure's revenue growth of 39% lagging behind Google Cloud's 48%, indicating market share pressures.
- Rising Infrastructure Costs: The company's increasing infrastructure costs have raised concerns among investors, as CFO Amy Hood noted a direct correlation between capital expenditures and Azure's revenue, potentially impacting future returns on investment.
- Stock Valuation Decline: Microsoft's price-to-earnings (P/E) ratio has fallen to 25, nearing its lowest level in three years, reflecting market caution regarding its growth prospects, despite analysts' price target of $596 suggesting a 48% upside.
- Investor Sentiment Weakens: Following the earnings report on January 28, Microsoft's stock has dropped 16%, leading to investor doubts about the returns from its AI infrastructure investments, although the low valuation may present a buying opportunity in the long run.
See More
Market Turbulence Creates Small-Cap Opportunities
- Market Instability: After a prolonged period dominated by mega-cap tech, the market has entered 2026 on shaky ground, with the S&P 500 breakeven for the year and the Magnificent 7 stocks averaging a -7.3% return, indicating investor concerns about future profitability.
- Surging Capital Expenditures: As tech giants pour tens of billions into AI models, chips, and data centers, investors are increasingly worried about potential margin compression, even as companies like Amazon tout operational efficiencies and cost reductions.
- Small-Cap Appeal: Skepticism towards large tech firms is prompting capital to rotate into smaller companies, particularly those positioned as enablers of AI development, with Franklin Templeton suggesting that opportunities may lie with suppliers and adopters rather than the mega-cap leaders.
- AI-Resilient Stocks: Despite challenges faced by large-cap software firms, JPMorgan argues that the recent selloff has been too indiscriminate, creating opportunities in what they term
See More
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- Legislative Loophole Closure: The UK government has announced that AI chatbots will be subject to the Online Safety Act, requiring platforms like OpenAI's ChatGPT, Google's Gemini, and Microsoft's Copilot to combat illegal content or face fines or bans, aiming to protect children from harmful material.
- New Regulations Implementation: Prime Minister Keir Starmer stated that the new regulations will set minimum age limits for social media platforms and restrict children's access to AI chatbots and VPNs, reflecting a proactive regulatory approach to address mental health issues among children.
- Response to International Trends: This legislation aligns with similar measures in Australia and Spain, which have banned social media access for those under 16, indicating a growing global concern for youth online safety, with the UK actively following suit.
- Future Legislative Process: The amendment to the Children's Wellbeing and Schools Bill has passed in the House of Lords and will now be reviewed by the House of Commons, and if both houses agree, it will further advance the implementation of laws ensuring children's safe use of social media.
See More
UK Strengthens Online Protection Laws for Children
- New Regulations Announced: UK Prime Minister Keir Starmer has announced that AI chatbots will be included in the Online Safety Act, requiring compliance with illegal content duties, with penalties including fines or blocking, highlighting the government's commitment to child protection.
- Expanded Regulatory Scope: The new measures target not only OpenAI's ChatGPT and Google's Gemini but also Microsoft's Copilot, aiming to close existing loopholes in the law to prevent children from accessing inappropriate content and enhance social responsibility.
- International Trend Influence: With countries like Australia and Spain implementing social media bans, the UK government is also considering restrictions on social media use for those under 16, reflecting a global concern for youth mental health and legislative responses.
- New Direction in Tech Regulation: Legal experts note that the government's latest actions signify a more proactive regulatory approach to rapidly evolving technologies, aiming to address risks arising from the design and behavior of technologies themselves, rather than just user-generated content.
See More
Citi Identifies Rebound Potential in Software Stocks Amid AI Disruption Fears
- Market Panic Intensifies: Fears that AI could render 'software as a service' business models obsolete have led to software stocks plummeting over 20% in 2026, with an 8% drop in February alone, causing investor anxiety about market prospects.
- Citi's Rebound Opportunity: In a February 9 note, Citi identified software and services stocks with market caps over $2 billion that have fallen at least 10% in the past month, suggesting these stocks have rebound potential amid improving earnings expectations.
- Performance of Microsoft and Palantir: Despite being the worst-performing 'Magnificent Seven' stock in 2026, Microsoft is still a buy according to Citi and Goldman Sachs, while Palantir, down nearly 37% from its 52-week high, is viewed as a potential investment opportunity after beating earnings expectations.
- Importance of Earnings Momentum: Citi strategists emphasize that as investor panic subsides, the earnings momentum of software stocks will be crucial in attracting traders, with positive revisions expected to drive interest back to these undervalued stocks.
See More
