If investors expect Microsoft profitability that means their stock is worth 1/6th today what it will be in 5 years. That is a cost of capital estimate of 40%.

If investors expect Microsoft profitability that means their stock is worth 1/6th today what it will be in 5 years. That is a cost of capital estimate of 40%. Which points to investors not believing the company will be that profitable. I am not saying investors don't think they will be profitable just they certainly don't believe that profitable.