$MSFT EARNINGS Analysis, Key Levels & TargetsNASDAQ:MSFT Analysis, Key Levels & Targets
Implied move for earnings today is between 324 & 367 (6% move) - so where are you setting your sell orders, lol...
There is a lot of downside that needs to be tested to be solidified for a move higher to be justified…
I have no open positions in NASDAQ:MSFT but tracking for SPY & SPX and of course I always may take one if I see a great setup… right now we are equally between the nearest support and resistance levels…
MSFTC trade ideas
MICROSOFT'S Fiscal 2023 Q4 Results: Assessing Growth and....Microsoft's Fiscal 2023 Q4 Results: Assessing Growth and Profitability
Investors are eagerly anticipating Microsoft's fiscal 2023 fourth-quarter results, set to be unveiled on July 25. The upcoming report holds significance as it is expected to include the company's outlook for fiscal year 2024, making it a crucial event for evaluating Microsoft's growth opportunities, profitability, and cash demand trends.
When considering Microsoft as an investment, three key factors set it apart from others.
Diverse Business:
Microsoft's strength lies in its diverse business offerings. Unlike companies that focus on specific industries or technologies, Microsoft provides exposure to various growth niches, including enterprise cloud services, AI, productivity software, and more. Owning Microsoft allows investors to capitalize on multiple expansion opportunities under one brand, thereby reducing the risks associated with heavy reliance on a single sector.
High Profitability:
Despite some fluctuations in financial metrics since the peak of the pandemic in 2021 and early 2022, Microsoft remains one of the most efficient generators of cash and profits in the market. In the last quarter, the company achieved an impressive 15% year-over-year increase in operating income, resulting in $22.4 billion in profit on $53 billion in sales. This high level of profitability reinforces Microsoft's position as a robust and stable investment option.
As the report is released, investors should focus on these essential growth indicators and look beyond short-term sales volatility to assess Microsoft's long-term potential. The company's diverse business and strong profitability make it an attractive investment opportunity for those seeking stability and growth in their portfolio.
Pricey Stock:
In terms of valuation, Microsoft is considered a pricey stock, with investors having to pay a premium for its valuable assets. Presently, Microsoft stock is valued at over 12 times its annual sales, comparable to the faster-growing Palo Alto Networks. However, in comparison, Apple offers a relatively better bargain with a valuation of 8 times its sales, while Amazon is even cheaper at less than 3 times its sales.
While there is a possibility that Microsoft's valuation may decrease in the coming quarters, particularly if the company reports disappointing sales results in late July or forecasts challenges in the upcoming operational year, the more likely scenario is that the business will continue to gain market share in various significant global tech industries. Additionally, any cyclical downturn in its operating system segment or consumer tech devices division is expected to be short-lived.
Considering Microsoft's bright long-term outlook, industry-leading profit margins, ample cash flow, and rising dividend payments, it emerges as an incredibly attractive stock to consider adding to your portfolio. For tech stock investors who prefer a less risky approach in a fast-moving industry, Microsoft provides an excellent opportunity to gain exposure to major trends while investing in one of the most valuable companies in the world.
$MSFT LongPYTH:MSFT
Mid TF trade here. MSFT had a nice lil growth yesterday. So this is a hopeful scalp. Setting up longs at imbalances which coincidentally fall just perfectly on the 0.618 Fib retracement.
Running standard SMC, on the 4 HR & 1 D there is a break of structure to higher highs and higher lows. We aren't trading against the trend, checking the divergences on the higher TFs, there is a strong flow of Buyer Action and Volume to drive this to higher regions.
Tight SL but high profit as always. We have a lovely 8.05 RR. All the best!
MSFT looking poised for $350+MSFT just bounce right off of golden pocket fib. Earnings AH tomorrow and I could see it trade back to $350 before earnings. Leaning more bullish with PT at $357. With MSFT placing a fee to use its AI as well as raising fees on MSFT 365, I see a great outlook for guidance. I hope that we have a great earnings report tomorrow.
MSFT Stocks: Fundamental vs. Technical AnalysisThis week 166 companies that make up 33% of the S&P 500 index will publish their reports for the second quarter. Among them, the second largest company in the index, Microsoft. And here, an interesting situation develops: the fundamental background is quite strong, and technical analysis shows signs of weakness. Judge for yourself.
Fundamental analysis:
→ the Android version of the sensational ChatGPT will be released this week;
→ Fundstrat analysts see a target price for MSFT shares of around USD 380 in the short term and USD 426 in the long term;
→ Barclays analysts have rated MSFT stock as a Buy with a target of USD 425 (previous MSFT share price target of USD 425) amid Microsoft 365 AI rollout.
However, let's evaluate the MSFT stock chart from the point of view of technical analysis. Note that after a sharp breakdown of the psychological level of USD 350 on July 18, 3 days of rollback followed, which completely leveled the progress of the bulls and lowered the stock price back below USD 350; Friday's low is below the low of July 18, which can be interpreted as a shortage of buyers after a bullish breakdown. The attack of the bulls did not attract followers. Thus, the market, by its behavior, casts doubt on the scenario of further growth, which can be imagined on the basis of a strong fundamental.
Fundamental or technical analysis? We will find out on Tuesday after the close of the main session, when the Microsoft report is released.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Microsoft Corporation (MSFT), DailyShares in Microsoft Corporation (symbol ‘MSFT’) have performed exceptionally well throughout the whole of the second quarter of the year with gains of around 80% outperforming the S&P 500. The company is expected to report earnings for the quarter ending June 2023, on Tuesday 25th of July after market close. The consensus EPS is $2,55 compared to $2,23 in the same quarter last year.
“ The financial image of the company is completely in line with the extraordinary performance in the second quarter. The current ratio as of 31/03/2023 is at 191% showing that the company is more than capable of repaying its short term liabilities with the current assets that are in hand. Also the payout ratio is just short of 30% indicating that the company is keeping funds from giving out as dividends to its investors to invest in their economic growth which shows the dedication of the company to grow even more.” says Antreas Themistokleous, an analyst at Exness.
Technical analysis shows the price has been trading in a bullish momentum since the beginning of March and is currently above the upper band of the Bollinger bands. This means that the bulls are pretty active pushing the price to the upside with volatility being fueled up. On the other hand the price is trading well above its moving averages and in combination with the Stochastic oscillator in the extreme overbought levels it is possible to see a correction to the downside especially if earnings expectations are not met.
MSFT getting ready for a bounce ahead of earningsWith a nice pullback today, I am hoping it pulls back a little more at market open to $351.43 before its continuation back up. Although, it is currently respecting its 1H 21MA around $352, so just keep an eye on it if it breaks below next support will be the $351.43.
I can see it retesting $360 next week before earnings on Tuesday 7/25 AH.
Microsoft Long Alltime High hit Earnings New 52-week highs this week, powered by the Dow which, on Friday, extended its streak of positive days to ten — something the blue chip index has not done in almost six years. The Dow has been powered by, among other things, a slew of corporate financial results, particularly from the banks, which showed not only improved profitability, but also strong guidance for the next quarter and full year.
I have explained 2 bullish scenarios,1 bearish(worse case).
Bullish:
higher highs higher lows
poc uprising
volume increasing
capital flow rising
In case the Take profits hit, and we have increased volume, I will ride the trend.
I will only take profit 10% of the microsoft portfolio and let the profit run.
Exit :Stop loss or trend change signal
The mid and long term horizon is bullish. If any Profit taking level reaches, and trend continuation is signalizing that the uptrend will be continued, I will increase agressively my positions and take only 10% profits of each position.I will let the prfoits run.
This trade setup is only for trend followers and on daily TF.
MSFT Microsoft Options Ahead of Earnings ! Growth Thesis !If you haven`t bought MSFT when they Bought 49% Stake in OpenAI, creator of ChatGPT:
Or sold on their warning to investors:
Then analyzing the options chain and chart patterns of MSFT Microsoft prior to the earnings report this week,
I would consider purchasing the 345usd strike price Calls with
an expiration date of 2024-1-19,
for a premium of approximately $28.95.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
The investment by Microsoft in OpenAI signifies a significant boost to their artificial intelligence capabilities. OpenAI's advanced technologies and expertise in AI research and development could potentially enhance the capabilities of Microsoft's Bing search engine. With access to powerful AI algorithms and resources, Bing may be able to offer more personalized and accurate search results, thereby attracting users who seek a more refined search experience.
Microsoft has been making strategic moves to expand its presence in various sectors, including cloud computing and enterprise services. By integrating Bing into its ecosystem of products and services, Microsoft can leverage its existing user base and partnerships to promote Bing as a viable alternative to Google.
In recent years, Google has faced scrutiny over data privacy concerns and antitrust issues, which could create an opportunity for Bing to gain traction among users seeking more privacy-focused alternatives. Additionally, Microsoft has been actively investing in marketing and advertising efforts to raise awareness about Bing and improve its market positioning.
While Google currently holds a dominant position in the search engine market, the landscape is dynamic and subject to change. If Microsoft successfully leverages its partnership with OpenAI to enhance Bing's capabilities, coupled with strategic marketing initiatives, it could potentially chip away at Google's market share over time.
The implementation, by Microsoft, of a chatbot like ChatGPT, powered by OpenAI's advanced natural language processing capabilities, could indeed provide an opportunity for consumers to find the cheapest price online for the same product. In an era where price comparison and cost-saving measures are highly valued by customers, this feature could be a valuable asset for Bing.
Amazon's reputation for having expensive and overvalued prices has been a topic of discussion among consumers. While Amazon provides a wide range of products and convenient shopping experiences, some users have expressed concerns about the pricing competitiveness on the platform. This presents an opening for Bing to attract cost-conscious consumers who are actively seeking better deals.
The concern over the origin of products, particularly those manufactured in China, has gained attention in recent years. Some consumers prefer to avoid purchasing Chinese-made products due to quality, safety, or political reasons. If Bing can provide a search experience that allows users to filter or identify the origin of products more effectively, it could cater to a segment of consumers who prioritize alternative sourcing.
I think MSFT will be one of the winners of the AI race.
Looking forward to read your opinion about it.
MSFT suppressed by the 3.000 level of the golden sectionMSFT suppressed by the 3.000 level of the golden section
This chart shows the weekly candle chart of Microsoft stock in the past two years. The graph overlays the low point at the end of October 2022 against the golden section. As shown in the figure, Microsoft's stock has reached another new high this week, breaking through the highest point at the end of 2021! But the weekly pattern of Microsoft stock this week is a long shadow line, with the highest point precisely suppressed by the 3.000 level of the golden section in the figure! Based on last week's weekly pattern, Microsoft's stock market is likely to enter a contraction triangle consolidation state in the future!
Is MSFT's bullish momentum depleted?
The uptrend channel
A 100% parallel extension of the uptrend channel indicates the strength of this bullish trend.
Symmetrical projection: An uptrend N pattern
By projecting a 100% symmetry projection of the initial swing from point A to B, and extending it from point C, the target price would be point D at $303.3.
Given that the anticipated symmetric pullback to point E did not occur, my expectation is for a further 100% extension from point D. As a result, the target price has been revised upwards to point F at $360.8.
Other key levels
Resistance
The historical highest high at $349.6 is a very strong resistance level, coinciding with the upper band of the channel's 100% extension. The more resistances encountered, the harder it is to break through.
Support
The 1.5 extension level at $ 332 is a support level that has been tested. Clear price reactions to key Fibonacci levels can enhance the overall significance and value of the analysis.
The prior low level, which is at $322.5, can always act as a significant support level. Moreover, it’s a resistance turned support level, making it more important.
Possible scenarios
If the uptrend continues…
When facing the key resistance at $349.6, the market should exhibit a clear movement, like a gap-up opening or a significant bullish candle, to demonstrate its determination.
If the bullish momentum is depleted…
The market is likely to pull back the price to below the prior low level, which is at $322.5.
Compared to the 1.5 extension support level, the level of the prior low holds greater importance. If the 1.5 extension support level is breached, it serves as a mere warning. However, If the level of the prior low is breached, it disrupts the rhythm of a healthy bullish trend and makes price movements difficult to anticipate.
Conclusion
If the key support at $322.5 is breached, it’s better to step out of the market. Allow the market to stabilize on its own, and wait for a clearer signal before reentering.
If not, the uptrend will continue, and the target price remains at $360.8.
Hindsight bias part
While our target price is $360.8, the prior historical high level at $349.6 represents the optimal target price. Considering the formidable resistance at the prior historical high, I prefer to sacrifice a small portion of potential returns in favor of a higher probability of success.
**Not Financial Advice**
The information contained in this article is not intended as, and should not be understood as financial advice. You should take independent financial advice from a professional who is aware of the facts and circumstances of your individual situation.
Ascending TriangleMSFT has been banging away at the resistance line of a large Cup & Handle pattern and has possibly moved the resistance line to 351.47 after a few attempts at this almost exact level.
This was looking toppy, but another leg up has changed that outlook, for now.
This stock is trying to beat an ATH, so price is making it's own resistance at an unusual level as it seems to have trouble getting past 351.47. There is no old price action above 351.47.
Often with almost no resistance overhead a stock will fly in to the sky for a while at least.
Strong stock. Earnings are fairly soon/7-27/and could explain the hesitancy.
Spinning top at resistance today/indecision.
This level is supposed to be a launching pad, not a camping ground. (o:
No recommendation
FTC Appeals to Block Microsoft Activision MergerI am providing a crucial update regarding the recent news of the Federal Trade Commission's (FTC) decision to appeal against the proposed merger between Microsoft and Activision. This development has significant implications for the tech industry, particularly for those who have invested or are considering investing in Microsoft stock.
The FTC's decision to appeal the merger indicates that regulatory authorities are scrutinizing the potential consequences of this consolidation. While mergers and acquisitions can often lead to positive outcomes, such as improved products and services, it is essential to approach this situation cautiously, considering the potential risks and uncertainties ahead.
As tech traders, it is crucial to carefully evaluate the potential impact of this appeal on Microsoft's stock performance. The uncertainty surrounding the outcome of the appeal, coupled with potential delays or even the possibility of the merger being blocked, could significantly influence the company's stock value in the short to medium term.
Therefore, I strongly advise you to exercise prudence and consider holding off on buying Microsoft stock until further clarity emerges regarding the outcome of the FTC's appeal. By doing so, you can better protect your investment and mitigate potential risks associated with this merger.
It is important to understand this is not financial advice but rather an alert to the potential implications of the FTC's appeal on Microsoft's stock performance. As always, I encourage you to consult your financial advisor or conduct thorough research before making investment decisions.
In conclusion, the FTC's decision to appeal the Microsoft-Activision merger has introduced an element of uncertainty into the market. By adopting a cautious approach and refraining from immediate stock purchases, you can better position yourself to make informed investment choices once more clarity on the situation emerges.