Blue chip and name of domestic technology Microsoft Corporation (NASDAQ: MSFT) succumbed to almost every roller coaster of the stock market that became 2020. In late February, the company warned investors that it expected its Windows units to miss their third quarter forecasts due to the coronavirus epidemic. The resulting drop in stocks forced MSFT to exceed its 50-day moving average for the first time since October 2019. However, from the low of nearly $ 132 at the end of last month, stocks have rebounded of their performance since the start of the year. Below I will delve deeply into the recent stock market action we have seen from the leader in software as a service (SAAS), and speculate on what the current volatile Wall Street climate might mean for security – on both sides of the spectrum.
With much of the world stuck at home after widespread orders to “stay at home”, it’s no surprise that Microsoft has seen a slight increase in its Xbox video game device and Microsoft Teams, a platform form of workplace communication. In the past 12 months, the stock has climbed 30% and is now supported by the 200 and 320 day moving averages.
However, it would be naive to assume a few supportive trend lines and a further rise from a recent trough was one way to achieve long-term upside success. To be safe, we need to look at all the facets and possibilities of the future of Microsoft Stock, including the short term, which could be volatile at best. For example, the aforementioned 50-day moving average has now moved to a rigid limit for stocks, capping an attempt to break out of stocks on March 31. MSFT has also broken below breakeven since the start of the year, a sure sign of uncertainty about the tech giant’s performance in the coming weeks.
In any event, it is important to note the exponential increase of 49% in short interest on equity during the last reporting period. While this represents less than 1% of the total available float in the stock, it does indicate that bears are starting to gain more control over MSFT. Either way, Microsoft stock is almost guaranteed to make notable moves in the coming weeks, as the volatile stock market climate continues to unfold.
Bernie Schaeffer’s Followers Graph of the week received this comment Sunday April 5.