Microsoft Stock Maintains Uptrend Amid Positive News and Strong Buy Recommendations
StockInvest.us, 1 month ago
Stock Overview
Microsoft Corporation (MSFT), listed on the NASDAQ exchange, had a closing price of $331.16 on October 12, 2023. This price was down by $1.26 or -0.38% compared to the previous day. It traded between a low of $328.73 to a high of $333.63. For the year 2023, the stock recorded a high of $366.78 and a low of $213.43.
The Microsoft Corporation has a substantial market capitalization of $2.46 trillion. The trading volume on October 12 was at 18.44 million shares and the average trading volume stands at 24.36 million shares. The earnings per share for the current period are $9.69, and MSFT trades at a Price to Earnings ratio of 34.18.
Technical Analysis
The 50-Day Moving Average for Microsoft is $324.78, while the 200-Day Moving Average is $299.23. This indicates an overall uptrend in the past year. The RSI14, a momentum oscillator, measures at 65 indicating slightly overbought conditions. Adjusted stop loss for this stock is at $315.51. The support level for MSFT is at $330.72, and resistance at $337.77. The MACD, another momentum-based indicator, scored at -6.27, representing a bearish undertone.
Fundamental Analysis
Microsoft has over 7.43 billion outstanding shares. The upcoming earnings announcement is scheduled for October 24, 2023. The stock has also undergone a discounted cashflow analysis resulting in a value of $335.80. The consensus recommendation from analysts is a "Buy" rating. Of the 35 analysts covering the stock, 29 suggests "Buy", 4 suggests "Hold", and 2 suggests "Sell".
Recent News
Notable recent news for Microsoft includes the clearance by the UK authorities for Microsoft's proposed $69 billion acquisition of Activision Blizzard. This move will likely consolidate Microsoft's position in the gaming industry and could lead to an increase in earnings down the line. Concerns, however, are being raised following an antitrust case launched by the Department of Justice against Google, and its potential negative impact on MSFT.
Price Forecast
Using the above data, we can forecast a reasonable expectation for the MSFT stock price for the next trading day, October 13, 2023, and the upcoming week. Considering the support and resistance levels, as well as the Moving Averages, it's expected that the price will oscillate between $330.72 and $337.77 tomorrow.
However, news about the clearance of the Activision Blizzard acquisition could positively impact MSFT's stock price over the next week, allowing it to break the resistance level and potentially target the annual high. Earnings announcement set to take place on October 24, 2023, could further stimulate the stock price, depending on the reported figures.
Conclusion
Given the technical analysis and considering recent news, the fundamental position of Microsoft remains strong with a buoyancy in its sector dominance. The general consensus among analysts leans towards a "Buy," and this report echoes that sentiment.
The stock maintains an uptrend and despite some dissatisfaction shown via recent news, Microsoft manages to exhibit robustness in its strategic acquisitions and potential for growth. Based predominantly on the potential increase in earnings following the Activision Blizzard acquisition, and strong buy recommendations from analysts, MSFT stock is defined as a "Buy". However, investors are advised to consider the potential impact of the ongoing antitrust case against Google before making an investment.
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