Stock Price Of MSFT Trends
Let’s start off by looking at what Microsoft does and what’s is involved in. Its business model has expanded greatly over the years and it’s now becoming a serious player in the cloud computing sector, though it is not quite ready to take on Amazon yet. However, it’s beating Google handily in the sector and is now more valuable than Google in term of market value.
Microsoft develops and licenses consumer and enterprise software. It is known for its Windows operating systems and Office productivity suite. The company is organized into three overarching segments: productivity and business processes and more personal computing. Through acquisitions, Microsoft owns Xamarin, LinkedIn, and GitHub. It reports revenue in product and service and other revenue on its income statement. morningstar
Microsoft Corp. engages in the development and support of software, services, devices, and solutions. The Productivity and Business Processes segment comprises products and services in the portfolio of productivity, communication, and information services of the company spanning a variety of devices and platform. The Intelligent Cloud segment refers to the public, private, and hybrid serve products and cloud services of the company which can power modern business. money.cnn.com
MSFT EPS Earnings Projections
Microsoft’s EPS is in a strong uptrend, hence logic dictates that the Astute investor will view sharp pullbacks and or crashes through a bullish lens. In other words, look at the long term trend, the stock is trending upwards, EPS is rising and insiders are not dumping the stock.
All in all, this indicates that MSFT will go on to put a series of new highs much faster than many of its peers. On a relative strength basis, it is far stronger than AMZN, GOOGL, or INTC, all three of which make for great long term investments.
What Are Analysts saying about MSFT
overall analysts seem to view MSFT through a favourable lens, though we would take their advice with a grain of salt. They usually are the last to issue a sell warning and always late to issue a buy recommendation, so focus on the trend which for now suggests that all strong price pullbacks should be embraced.
Stock Price of MSFT
The coronavirus pandemic has pushed investors to the edge, they are dumping grandpa, grandma and the baby with the bathwater. In other words, hysteria is in full control and logic has taken a long term vacation. The crowd is not checking the facts, they are falling for fictional projections issued by individuals masquerading as experts.
MSFT is still trading in the oversold ranges on the monthly charts, which indicates it’s just a matter of time before it trades north of 200. The stock needs to trade above 192 on a monthly basis. If it can achieve this feat, it will be in a position to put in a series of all-time new highs and target the 240 ranges. 12 months from today, MSFT could be trading as high as 300, with a possibility of overshooting to 360.
In such an environment where companies are embracing technology and AI is set to become the dominant trends for decades to come, investors should use strong pullbacks to add to their positions in this company. Hence the stock price of MSFT is expected to be north of 300 if it can satisfy the above objectives.
Another Great Investment Idea
Before we get into the finer details, let’s look at some of the statements we made over the past few weeks. These comments are being extracted from the market update service.
Put your personal feelings aside and understand this simple fact. No bull market has ever ended on a note of fear; it has always ended on a note of extreme joy. Market Update Jan 17, 2020
Since the inception of mass media, the idea has been to stampede the crowd or create a feeling of euphoria and both conditions are deadly when it comes to investing. However, the new ploy is to keep the masses agitated constantly or uncertain. Why would they do this? When someone is uncertain it takes longer for them to cling to a given viewpoint; they keep jumping from one camp to another, and that is one of the reasons why this bull market has lasted so long.
A sharp pullback is still an outcome we view through a very bullish lens. The ideal setup calls for the Dow to trade to the 28,800 to 29,000 ranges, with a possible overshoot to 29,300. After that, a nice sharp pullback would set the bedrock for a surge to and possibly well past 30k. Market Update Dec 29, 2019.
The best time to buy is when the masses are in a state of disarray, and this usually occurs when it looks like the markets are crashing. The masses are hardwired to view strong pullbacks as the start of a new crash, but most pullbacks are nothing but resting points; the markets use these stops to build up energy for the next upward leg. Tactical Investors should hope that the market’s pullback strongly, for it provides them with a lovely opportunity to open long positions at a discount. Stock Trends & The Corona Virus Factor
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