Microsoft shares (MSFT) were up over 6% yesterday after the company announced that it had acquired Affirmed Networks to provide new opportunities for a global 5G ecosystem. FAANG stocks were on the winning side with an average push of 5%.
Many traders on Wall Street pocketed profits yesterday and others cut their losses as well. It was after Microsoft Corporation (NASDAQ: MSFT) stocks rose more than 6% in one day. The positive jump is attributed to several fundamental factors that occurred during the week, especially as the end approached.
This drove the shares higher and maybe the weekly bar will close with a strong green candle. After retesting the support level that served as support for the third quarter 2019 lows at $ 133, stocks are now trading at $ 156. MSFT yesterday reached the $ 156.11 mark, but today, in the pre-commercial market, the stock is down 3.08%.
Although a huge drop in early February, which wiped out all of the 2019 gains in late January, the Microsoft stock market reacts positively to external and internal forces. After the strong rebound that ended the week, it could only continue if the optimistic atmosphere of the time prevailed.
Besides the actions which are doing well at the end of the week, there are the FAANG companies. FAANG, which is an acronym that refers to the stocks of the top five US technology companies, has jumped by around 5% on average. It was after Facebook Inc (NASDAQ: FB) rose 4.56%, Amazon.com Inc (NASDAQ: AMZN) by 3.69%, Apple Inc (NASDAQ: AAPL) by 5.26%, Netflix Inc (NFLX) of 6.02% and Alphabet Inc (NASDAQ: GOOGL) of 5.38%.
There are reasons why Microsoft stocks mostly led the pack up.
Reasons for Microsoft’s higher inventory (MSFT)
First, Microsoft Inc. announced yesterday that it has agreed to acquire Affirmed Networks. Affirmed Network Inc. is a registered American company providing telecommunications equipment and solutions. The company, which has only existed for ten years, has seen its services develop to provide cloud of mobile content, software upgrades, radio optimization, mobile broadband virtualization, management wireless network traffic and voice optimization.
According to Microsoft, the next generation of wireless networks will offer a multitude of new opportunities to both society and the business world. They include applications in autonomous vehicles, in future smart cities, also in virtual reality and in smart industries. With global technology moving in this direction, it is clear why investors are interested in giving their money back to Microsoft Company.
On the other hand, the increase can also be attributed to the ongoing coronavirus stimulus package, which is supposed to keep the US market from collapsing further. Until the promise is delivered on the invoice in the coming weeks, the stock may be up. However, if the stimulation of the packaging does not catalyze the rise to the record level and the coronavirus continues to threaten society, a free fall could be inevitable.
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