5 Best Stocks to Buy with “Wide Moats”

2. Microsoft Corporation (NASDAQ:MSFT)

Short Percentage of Float: 1.12%

Microsoft Corporation (NASDAQ:MSFT) is one of the best stocks to buy with wide moats.

The latest moat-relevant update came on April 29, 2026, when Microsoft Corporation (NASDAQ:MSFT) reported fiscal third-quarter results that showed how deeply its cloud and productivity franchises remain embedded in enterprise spending. Microsoft Cloud revenue rose 29% to $54.5 billion, while commercial remaining performance obligation jumped 99% to $627 billion, pointing to a large base of contracted future revenue. Azure and other cloud services revenue increased 40%, while Microsoft 365 Commercial cloud revenue rose 19%.

The results fit the wide-moat case because Microsoft’s advantage is not tied to one product line. Morningstar has described Microsoft’s moat as primarily driven by switching costs, with network effects and cost advantage as secondary sources, helped by the breadth and integration of its applications. That showed up again in the quarter, as Microsoft said paid Microsoft 365 Copilot seats were now over 20 million, with ARPU growth led by both E5 and Microsoft 365 Copilot.

Microsoft Corporation (NASDAQ:MSFT) develops software, cloud infrastructure, productivity tools, operating systems, business applications, gaming products, and AI services for consumers, enterprises, developers, and public-sector customers.