Microsoft’s $69 Billion Activision Blizzard cleared by Britain LONDON - Britain finally cleared Microsoft (NASDAQ:MSFT)'s $69 billion acquisition of Activision Blizzard (NASDAQ:ATVI) on Friday after it forced the Xbox owner to sell the steaming rights to games including "Call of Duty" to address its competition concerns.
The deal was blocked in April by the Competition and Markets Authority (CMA) which said it could give the U.S. computing giant a stranglehold over the nascent cloud gaming market.
But the regulator ripped up its play book by reopening the case after Microsoft agreed to sell the streaming rights to Activision's games to Ubisoft Entertainment, with remedies to ensure the terms were enforceable.
The deal was the biggest test of the CMA's global power to take on the tech giants since Britain left the European Union.
It said "sticking to its guns" in the face of criticism from the merging companies had delivered an outcome that was better for competition, consumers and economic growth.
The approval paves the way for Microsoft to close the deal by Oct. 18 after it extended the deadline to secure UK approval.
The CMA said Microsoft's concession on streaming was a "gamechanger", adding that it was the only competition agency globally to have delivered this outcome.
The new deal will stop Microsoft from locking up competition in cloud gaming as this market takes off, preserving competitive prices and services for UK cloud gaming customers," it said in a statement.
Microsoft announced the deal in early 2022, aiming to boost its growth in console, mobile, PC, and cloud gaming to compete with the likes of Tencent as well as PlayStation-owner Sony (NYSE:SONY).
The U.S. Federal Trade Commission opposed the deal but after failing to stop it, the CMA was left standing alone.
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Microsoft (MSFT): Decision Point – Will It Hold or Drop?Since our last analysis on Microsoft, not much has changed in terms of price action, as it rose to $469 before getting stuck again at $416. However, there is one major development – Microsoft has formed a new trend channel. We have marked this crucial channel in red and labeled it "Must hold for more upside," emphasizing its importance. A major decision is approaching for $MSFT.
Either Microsoft holds this channel, leading to a surge higher, or it loses this level, which would confirm the bearish head and shoulder pattern. We've maintained a bearish outlook on Microsoft since January 2024, and recent developments seem to support our analysis. For now, we're patiently waiting and letting the market decide.
If Microsoft loses the channel, we could find initial support for wave (A) around $316-306. However, a better buying opportunity for wave II may present itself closer to $220 – though reaching this level will take some time. 🫡
Microsoft (MSFT) Stock Hits a 4.5-Month HighMicrosoft (MSFT) Stock Hits a 4.5-Month High
On 31 October, our analysis of Microsoft (MSFT) stock highlighted:
→ The price is forming a long-term upward channel, illustrated in blue.
→ The channel’s lower boundary serves as a significant support level.
On Friday, MSFT stock climbed to $445, its highest level since mid-July, buoyed by news that OpenAI may grant Microsoft access to key AI-related technologies.
Will the Price Continue to Rise?
There are reasons to suspect that the bullish momentum may not sustain.
Technical analysis of MSFT’s chart today suggests:
→ The price is near the median of the long-term channel, and this median could act as resistance. This is hinted at by the long upper shadows on Thursday and Friday’s candles.
→ The emerging bullish breakout above the September high around $441 might prove to be a false breakout, similar to the false bearish breakout of early October support near $408 (highlighted with arrows).
Additionally, Microsoft’s stock has underperformed compared to market indices, which are at historic highs. This could mean the price may retrace to $430 or lower, aligning more closely with average autumn levels.
Analysts, however, remain optimistic about MSFT’s prospects. According to TipRanks:
→ 26 out of 29 analysts recommend buying MSFT stock.
→ The average 12-month price target for MSFT is $497.
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 - Is The Top Already In?One of the key points to Microsoft is it is, in essence, a U.S. state-backed corporation, and one that is trading at more than $2.5 trillion market cap at present.
You're looking at a company that just set a new all time high while the overall market is not healthy and the macroeconomic fundamentals are actually bearish.
And so, we have to seriously ask ourselves if it's time to short God the top.
Microsoft's price action on the monthly is curious.
The price action is healthy and natural all the way from where it bounces to the top, and only becomes curiously strange when it gets to the top.
Why does a stock that bounces at the right place and forms a fully proper reversal pattern, which we see on the weekly:
Only sweep the All Time High?
Why doesn't it raid the ATH and run bigly larger like NVDIA did?
Well, the answer is actually quite clear when you overlay NVDA to MSFT:
In essence, NVDA at $480-450 is MSFT at $350. The difference in price action you see today is because NVDA was relatively weaker in the past, meaning MSFT was inordinately strong in the past.
Anything that reaches an extreme will reverse. If it reaches the extreme twice, it will reverse hard twice.
The geopolitical situation in the world is not healthy. There is a ton of sabre rattling between NATO and the Nation of China at the moment.
The western propaganda machine wants you to believe that Xi Jinping intends to invade Taiwan because he's very evil very super Mao Zedong++, but in reality it's more like the "International Rules Based Order" wants to use the fact that the Chinese Communist Party is rotten and unforgivable as a handle to depose Xi and have Taiwan invade the Mainland under the guise of international "aide".
Why this matters to you as a trader is because you're flirting with getting gapped down hard since Beijing daytime is New York night time.
If you want to be long right now you need to be hedged long volatility, or you're risking your life.
Moreover, Xi, in order to defend himself, his faction of Chinese nationalists, and China's 5,000 year history, can overthrow the CCP in a Gorbachev-style coup overnight, weaponizing the 24-year-long persecution and genocide of Falun Dafa by the faction belonging to former Chairman Jiang Zemin (it died this year).
The significance is major to traders because your beloved governments, banks, and corporations have stained their hands crimson flirting with the Jiang faction toadies in Shanghai (Babylon) in order to get all the benefits they desire.
Google the Neil Heywood story if you want to see a classic example of a British billionaire getting gibbed by the greatest evil of all time.
Much to do before the call's key points.
Before we continue, I examine the price action I expect to manifest in SPY (SPX Futures ETF) for the remainder of the month, which can serve as something of a compass for what lies ahead:
SPY - A Dip Is Coming. Maybe Buy It?
Back to MSFT:
This is a very hard setup to trade
Because the June high may have been a hard top, double and triple top or not (See TSLA July-September '22)
Lower lows lower highs indicates the dip is hard to buy
But the short may only take us to the $320 range.
Sweeping $300 is the key to a bullish continuation above the highs
Maintaining ~$280 is the key to continuing upwards at all.
Microsoft has a really notable catalyst in that its earnings are on July 25 postmarket, which means price action will manifest the morning of July 26, which just so happens to be when the next FOMC meeting is.
After July FOMC the next FOMC is deferred until September 20, 9 days short of quarter end, notable because of the notorious JPM Collar, which I discuss here:
SPX/ES - An Analysis Of The 'JPM Collar'
What I expect is we see a fairly violent correction on Microsoft back to the $300s before we can see any kind of further meaningful flirtation with a run over the $350 ATH.
But the June high may have been the top for the foreseeable future, as evidenced by the relationship between NVDA and MSFT.
Be careful. The time we have left for happy and normal days is so short you can almost count it on the fingers.
When things really emerge, Nasdaq 8,500 will be the least of your concerns, really.
Microsoft channel break AnalysisFundamental / Technical / News analysis
Microsoft earnings were positive.
But they were not enough to break this channel since June 10th.
Today we gapped above resistance, breaking the channel.
This was caused due to Microsoft winning the JEDI contract from the US government; who beat Amazon, Oracle and IBM cloud platforms.
Revenue from the JEDI contract is estimated at $10 billion over 10 years.
The value of the contract isn't significant to Microsoft market cap of $1 trillion (1%), specially as it will take a decade to get.
However, Microsoft earnings gave Azure (cloud service) a lot of importance. Beating its competition in this area, will boost sentiment. After all... we did break resistance on this specific news! Price talks more than anything.
Microsoft in Focus Ahead of Key Earnings, AI Outlook Under WatchMacro:
- Microsoft (MSFT) climbed on cautious optimism ahead of major earnings and economic data.
- Four of the “Magnificent Seven,” AMZN, AAPL, META, and MSFT, are set to report, with investors focusing on Microsoft (MSFT) today.
- Wall Street expects EPS of 3.22 USD and revenue of 68.44 B USD, both up YoY. Microsoft’s strength in AI, cloud, and enterprise software, along with its continued investment in AI talent and solid dividend history, makes this a closely watched report.
- Key drivers will be its results, AI/cloud growth outlook, and forward guidance, while any surprises could shift the stock sharply.
Technical:
- MSFT recovered and tested the resistance at around 396, confluence with EMA78. The price is sideways, and we await a clearer breakout to determine the following direction.
- If MSFT breaks above 396, the price may approach the following resistance at 405, confluence with the 100% Fibonancci Extension.
- On the contrary, remaining below 396 may prompt a retest to the support at around 378, confluence with the broken descending channel.
Analysis by: Dat Tong, Senior Financial Markets Strategist at Exness
Microsoft - A Little Lower And Much Higher!Microsoft ( NASDAQ:MSFT ) is about to retest strong support:
Click chart above to see the detailed analysis👆🏻
In mid 2024 Microsoft perfectly retested the previous channel resistance trendline and the recent weakness has not been unexpected at all. However the overall trend still remains rather bullish and if Microsoft retests the previous all time high, a significant move will most likely follow.
Levels to watch: $350
Keep your long term vision!
Philip (BasicTrading)
Microsoft (MSFT): A Potential Plunge After a Decade's RiseOn the Microsoft three-day chart NASDAQ:MSFT , we've observed that the initial cycle of Wave (5) & I peaked at $430, hitting the 61.8% extension level, and has since declined to $402. We believe that $430 will now act as a strong resistance level.
We anticipate a significant correction for Microsoft, potentially dropping to between $220 and $100. This forecast is based on the end of the first bullish cycle, following a decade of substantial increases in Microsoft's stock price. Such a correction is seen as necessary for sustainable long-term growth
The exact nature of the correction, whether it adopts a Flat or Zigzag pattern, remains to be determined. Flats are more common than Zigzags, hence they are considered more likely, but we are keeping an open mind as we monitor the chart's developments.
We will hold off on positioning ourselves immediately, opting instead to watch how the situation unfolds on the broader chart before identifying potential smaller-scale entry points.
Microsoft - Slammed after the earnings report Prior to the beginning of the current earnings season, we warned investors that this would be a volatile period preceding the ECB and FED meetings, characterized by companies narrowly beating market expectations or failing to fulfill them. We also stated that this would enforce our thesis about the second stage of the bear market and progression deeper into the recession.
It did not take long before earning season arrived, and companies started to prove our predictions true (Adidas, Alphabet, Mattel, etc.). Unfortunately, we expect this trend to continue in the next earning season; indeed, we believe it will be far worse than the current one.
Yesterday, Microsoft announced its earnings for the third quarter of 2022, in which it reported an 11% increase in revenue and a 6% increase in operating income. Additionally, the company reported a 14% decrease in net income and a 13% decrease in diluted earnings per share. That subsequently led to a drop in the price of MSFT stock by more than 6.5% after hours.
In our opinion, this merely highlights what we have been reiterating for a while. The market is in recession, and the recent bounce off the 2022 lows represents merely another bear market rally predestined to fall later. With that being said, we expect economic conditions to worsen next week with another FED rate hike.
Illustration 1.01
Illustration 1.01 shows the daily chart of Microsoft stock. It can be seen closing at 250.66 USD yesterday; however, after the close and earnings report, it plunged more than 6.5% to 234 USD. This dramatic price action occurred despite Microsoft announcing an increase in revenue and operating expenses compared to the same period a year ago.
Technical analysis - daily time frame
RSI, MACD, and Stochastic are all bullish. DM+ and DM- are also bullish. Overall, the daily time frame is bullish; however, the data does not reflect the drop after earnings. Therefore, we expect the daily time frame to turn bearish today.
Illustration 1.02
Illustration 1.02 displays the daily chart of MSFT stock and simple support/resistance levels.
Technical analysis - weekly time frame
RSI, MACD, and Stochastic are flattening, trying to reverse. DM+ and DM- are bearish. Overall, the weekly time frame remains bearish.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
Microsoft - Time to Buy the Dip? Still the undefeated software giant Microsoft , top 3 company of the world has corrected for 25%, nearly as much as we have seen in March 2020.
Is it time to buy?
Fundamental indicators:
Revenue and Profits - consistent strong growth for the past 10 years
Profit margin - impressive 35% in 2021
P/E - although still above the norms with 27x ratio it can be considered by many very much acceptable for this highly effective company
Liabilities - no problems with debt
Technical Analysis (Elliott Waves):
The rapid drop in March 2020 has completed correction that has been observed for nearly year and a half and formed by a Running Flat
Since then Microsoft has enjoyed an explosive growth with over 150% increase in an impulse movement
And having peaked at $350 there is another correction developing now
Given the rank of this highly sought after stock it is possible to assume that this correction is going to be similar to the previous one and the depth is not going to exceed 0.382 Fibonacci retracement of wave 3, i.e. not lower than $230, and it will also be shaped as a Running Flat
Duration of this running correction is likely to be longer than the previous one lasting at least till end of 2023 followed by another rocket-like movement to the moon
What do you think about the prospects for Microsoft ?
Please share your thoughts in the comments and like this idea if you would like to see more stocks analysed using Elliott Waves.
Thanks
MICROSOFT - Trend-Following Setup!Hello Trading Family, I found MICROSOFT chart interesting.
We can see that MICROSOFT is currently trading inside these two blue trendlines forming a rising channel.
And it is currently approaching a strong rejection/ support area.
I call it "War Zone", highlighted in Orange (circle).
The highlighted orange circle is a strong area to look for buy setups as it is the intersection of support in green and the lower blue trendline acting as non-horizontal support. (trend-following setup)
As per my trading style/plan:
Short-term: As MICROSOFT approaches the orange circle (area), I will be looking for bullish reversal setups on lower timeframes (like a double bottom, trendline break, and so on...)
Long-term: I will be waiting for a third swing high to form around the upper red trendline (projection in purple) for it to become valid then buy on this last swing high (gray area) break upward.
Always follow your trading plan regarding entry, risk management, and trade management.
Good Luck
All Strategies Are Good; If Managed Properly!
~Rich
Microsoft will be reporting Q3 2020 Earnings on April 29Analysts are expecting close to $36.9 bn in revenues for Q3 2020. This represents a revenue growth estimate of around 20% YOY. Microsoft is in strong position to continue its business uninterrupted even during COVID-19 outbreak. However, 20% growth rate was baked into valuations at the end of January, before economic disruptions took place. Microsoft’s own guidance for Q3 2020 is - estimated revenue of $34.1 to $34.9 billion, which is lower than analysts’ estimates of $36.9 billion. Given a backdrop of economic slowdown, it will be hard for the company to exceed, and possibly even meet these expectations. The price action on the chart shows a lower top at $180 per share vs. $187 in March and RSI crossed pointing downward. In conclusion, Microsoft will remain one of the strongest drivers on the market. However, all the expectations may have been already priced in.
Microsoft broke the All-Time High !Hello, Traders!
Monfex is at your service and today we overview Microsoft .
Last Friday, the Pentagon selected Microsoft as the winner of its winner-takes-all cloud contract, which could be valued as high as $10B.
The Global 2000: The World’s Best Employers List consists of 500 companies.
In the second place - Microsoft !
A Flat top triangle pattern was broken and the price is over the resistance zone with a bullish formation and it's a good buy signal. Bulls dominance.
The target is 127% Fibonacci.
The target zone ~ $155
The local support zone ~ $142-142.5
The support zone ~ $136-137
Market Cap
1096.412B
Share your thoughts, ideas about the market under the chart.
Watch for our Updates to be the first who gets well-timed signals !
GOOD LUCK AND LOTS OF PROFITS !!
Disclaimer
This report is for information purposes only and should not be considered a solicitation to buy or sell any trading assets. Monfex accepts no responsibility for any consequences resulting from the use of this material. Any person acting on this trade idea does so entirely at their own risk.
Microsoft - This might be the ultimate breakout!Microsoft - NASDAQ:MSFT - will break the all time high:
(click chart above to see the in depth analysis👆🏻)
If you wonder why Microsoft has been rallying +15% this month, market structure will give you an answer. In fact, the recent bullish break and retest was totally expected, and if we take into account the recent quite strong bullish behaviour, an all time high breakout will follow soon.
Levels to watch: $450
Keep your long term vision!
Philip (BasicTrading)
Microsoft - This Will Lead To Trouble!Microsoft ( NASDAQ:MSFT ) shows some clear weakness:
Click chart above to see the detailed analysis👆🏻
Back in mid 2024 Microsoft created another new all time high and in doing so also retested the major upper resistance trendline of the longer term rising channel formation. Following this bearish retest, a correction is very expected before we then see the bullish trend continuation.
Levels to watch: $350
Keep your long term vision,
Philip (BasicTrading)
Microsoft - Short Term Top Formation!Microsoft ( NASDAQ:MSFT ) could create a short term correction:
Click chart above to see the detailed analysis👆🏻
Almost for the entire year of 2024, Microsoft has been moving sideways and respecting the upper channel resistance trendline. It is quite likely that we will see a correction, considering that buyers are still weak, before we then see the overall trend continuation.
Levels to watch: $350
Keep your long term vision,
Philip (BasicTrading)
Microsoft (MSFT): Can Earnings Sustain the Trend Channel?With Microsoft set to report earnings, investors are keenly watching updates on AI-related spending, especially growth within Azure and Copilot, as well as broader financials. A significant focus will be on capital expenditures (Capex) for generative AI initiatives, expected to rise from $9.92 billion a year ago to an estimated $14.74 billion in this recent quarter. Beyond revenue and earnings, the market is waiting to see how these hefty investments are shaping the company’s growth trajectory.
Technically, NASDAQ:MSFT continues to test the lower bound of its trend channel—a level that may weaken with repeated retests. The stock’s reaction to earnings will reveal if this support can hold. The formation suggests a potential head and shoulders pattern, particularly if NASDAQ:MSFT dips below the neckline support at $388 with declining volume.
For now, we’re maintaining our cautious outlook. If Microsoft fails to hold its key support levels, it may confirm the bearish trend we’ve been observing. As always, we’ll provide updates if any significant developments occur after the earnings report.
Microsoft-Backed Rubrik Eyes $713 Mln IPOIn a move signaling robust confidence in the cybersecurity sector, Rubrik, a Palo Alto-based firm backed by Microsoft ( NASDAQ:MSFT ), is set to embark on an initial public offering (IPO), aiming to raise up to $713 million, according to sources familiar with the matter.
The cybersecurity software company is planning to offer 23 million shares priced between $28 and $31 each, potentially valuing Rubrik at approximately $5.4 billion at the upper end of the range. This IPO initiative underscores Rubrik's strategic positioning amidst a burgeoning demand for cloud-based ransomware protection and data-backup solutions.
Rubrik's planned IPO arrives against the backdrop of a revitalized U.S. IPO market, signaling a resurgence in investor appetite following a period of subdued activity. Notable successful listings, including those of Reddit and Astera Labs, have set the stage for a wave of upcoming public offerings, with companies like Cato Networks and Synechron poised to join the fray.
Founded in 2014 by venture capitalist Bipul Sinha, Rubrik has established itself as a leader in the cybersecurity space, serving over 5,000 business clients, including industry giants like Nvidia Corp and Home Depot. The company's robust growth trajectory is evidenced by a 47% increase in subscription annual recurring revenue compared to the previous year.
However, amid its IPO preparations, Rubrik finds itself entangled in a U.S. fraud investigation related to a former employee. The U.S. Department of Justice is probing allegations that the ex-employee diverted funds from 110 contracts with Rubrik into a personal operating entity, a development that adds a layer of complexity to Rubrik's IPO journey.
Despite the regulatory scrutiny, Rubrik's IPO aspirations underscore the market's bullish outlook on cybersecurity solutions. With the backing of industry stalwarts like Microsoft and a track record of delivering cutting-edge cloud-based security services, Rubrik's public debut promises to be a significant event in the cybersecurity landscape.
As Rubrik charts its course toward the public markets, investors will be keenly watching how the company navigates the IPO process amidst regulatory challenges and capitalizes on the growing demand for cybersecurity solutions in an increasingly digitized world.
Microsoft Bullish Cup and Handle Microsoft - NASDAQ:MSFT
A bullish monthly and weekly chart:
✅Monthly MACD Cross
✅ Long Term parallel channel intact
✅ Above 200 day & week MA
✅ Cup and Handle (with a high handle - Preferred)
✅ Good Risk: Reward Ratio at 7.6 (51%+ vs -7% loss)
⚠️ Stop loss levels on chart 🫡
A great set up. Those that are patient could wait for a potential pull back (arrow on chart) as we are reaching into overbought levels on the RSI on the weekly. It would not be unusual for Microsoft to pull back 5-8%. The R:R would be significantly improved if you waited and if it led to an entry from approx. $350 (after a 5-8% pull back), this would line up with the 200 DSMA also. However there are no guarantees of a pull back.
Those half as cautious could enter half a position here and see what happens and place another entry at $350.
All in all the $330 - 335 red box area on the chart is an absolute stop loss level. If this level is lost I would be out of the trade fast.
So you have options with this set up:
1) Entry here with a tight 7% stop.
2) Half a position here and half at approx. $350 with a stop at $335.
3) You wait for $350 and you place your stop at $330.
These all result in a similar loss of 5 - 7% in the event the trade fails. The upside potential is always 50%+. You can always cut early also at target one and take something at the 26% profit level.
It important you take full responsibility for your trade, position accordingly and be ok with the small 5-7% loss as it will likely happen, we are only leaning on the probability that maybe 60-70% of the time these trade set up provide us the return we want.
I have not really ventured into the earnings or dividends however they are both positive contributors to this trade as earnings have been excellent and dividends whilst minimal, are dividends at the end of the day. We are here for the trade and play a set up off the chart. The fundamental's are just nice framing for the stock in our minds eye.
PUKA
Microsoft Chart Update: Key Levels to Watch Now!⚠️Examining Microsoft 's NASDAQ:MSFT 2-hour chart , we see the end of Wave ((v)) at $415, coinciding with a challenging earning call. Currently, we expect short-term support at the Wave ((iv)) level, around $364, and aim to stay above the 61.8% mark of $349.
📉 As we're potentially starting a long-term Wave II, we anticipate finding initial support without a significant breakdown. The 2-day chart suggests we might be nearing the cycle's end, with Wave 5's potential range between $388 and $430. If a pivot at 38 to 50% happens it could lead to new highs, indicating the current cycle isn't over yet and we have to see wave 5. If not, a deeper correction to at least $214, the previous Wave (4) level from November 2022, is plausible.
😷 The pandemic level at $136 also remains within the realm of possibility for Wave II. This reflects the market's need for corrections after strong upward momentum in recent years. Please keep in mind that there is no chart on this world that is growing without corrections and if you zoom out on all big bad events, they are about non existing and so will it be if Microsoft or other will have a larger pullback!
Microsoft - Long PositionThere's A Lot To Like About Microsoft's Upcoming US$0.62 Dividend. The company's next dividend payment will be US$0.62 per share, and in the last 12 months, the company paid a total of US$2.48 per share. Last year's total dividend payments show that Microsoft has a trailing yield of 0.9% on the current share price of $261.12. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.