Microsoft stock: buy or sell
Updated on:
Jan 25th, 2021
2
Microsoft stock brief
- Counting last Friday, it's been 4 consecutive sessions in green for Microsoft. Price closed last Friday at $225.95 after only changing a 0.44%.
- Microsoft is presenting its earnings report on Tuesday
- The Goldman Sachs Group published a strong positive rating for Microsoft last Thursday
- Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide.
Should I buy Microsoft stock?
All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $MSFT stock a buy?
Currently, Microsoft stock matches one trading strategy:
ATH buy setup
All-time Highs is always an excellent buy point for those who like to buy high and sell higher. The good point of buying at ATHs is that price doesn't struggle with upper resistances, and usually it rises rapidly. However, you must always be aware of a possible bulls trap that may trigger your buy order and then falls sharply. That's why a stop loss is always important. Price is now at 2.79% of all-time highs and it can breakout at any time, so if you want to trade this setup it's recommended to setup your order at $232.25. The stop loss would be set at $209.03
| Buy setup | Buy point | Stop loss | Risk |
| ATH buy setup | $232.25 | $209.03 | 10.00% |
Should I sell Microsoft stock?
Knowing when to sell a stock is even more difficult than knowing when to buy it. Trading strategies help us to avoid impulsive decisions based on our feelings or the buzz that surrounds the market. We like very simple setups to guide us on when is the best moment to sell a stock. Be aware that these setups should not be used for shorting $MSFT stock
A guiding principle is that you should not hold an operation that leads to higher than expected losses by the time of purchase. The moment to sell your stock should always be determined by the stop-loss (automatic or manual)
Is it time to sell Microsoft stock?
Currently, Microsoft stock doesn't match any of our preferred sell setups, so if you own Microsoft stock and your operation is in profit probably is not time to sell now
Microsoft ratings
In the last month, just one brokerage rating was published for Microsoft
| Brokerage firm | Rating |
|---|---|
| Jan 21st, 2021 | |
| The Goldman Sachs Group | |
Microsoft stock analysis
SMAs overview
Supports and resistances
The current resistances are:
The current supports are:
Bollinger bands
Since the price broke down the lower band on January 14, the price has bounced off by 6.21%. The price is trading near to the upper Bollinger band, poiting some level of overbought in recent sessions. This is not a sell point, as price can move in these levels for many days and weeks
Relative strength index
The has been between the levels of 70 and 30 for some weeks, and therefore, without this indicator really serving to help us make any decisions.
Microsoft stock price history
Microsoft started trading priced at an adjusted price1 of $0.06 on Mar 1986. Since then, MSFT stock has risen by 376,483.33%, with an average of 11,073.04% per year. If you had invested thousand dollars in Microsoft stock on the IPO, it would have a value of $3,765,833.33 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for Microsoft stock
How much a stock will be priced tomorrow or next week is quite unpredictable. However, many stock price forecasts are published every day by banks, financial institutions and independent analysts.
Along with buy or sell recommendations, financial institutions release their price estimates based on the stock price action and the company fundamental data. Most of these estimates follow the publication of new financial data by the company, and many times. If you are a small investor you shouldn't trade based on these predictions.
We don't have any target price posted in the last month for Microsoft.
| Brokerage firm | Price target |
|---|---|
| Jan 21st, 2021 | |
| The Goldman Sachs Group | Not available |
Earnings and financials
Microsoft ($MSFT) presents Q2 earnings report on Tuesday. Market forecasts of $1.64, compared to previous quarter that was $1.82. Regarding to turn over, the estimations are $40.2 billion.
In case you are a shareholder of Microsoft stock, you should double check your stop-loss, as financial report release date has higher than usual volatility. Check company's website to confirm time and details about the earnings call and the earnings report.
Microsoft ($MSFT) had the quarterly financial event and posted the report last October. Microsoft beat consensus earnings estimates and reported of $1.82, that is a 18.18% improvement versus the forecasts of $1.54. In line, reported revenues were $37.2 billion compared to estimates of $35.7 billion.
Same quarter last year, reported EPS was $1.38, so current EPS means an increase of 31.88%. Looking at sales, figures climbed a 12.40% compared to $330.6B same quarter a year ago.Microsoft performance
| Company | 1m | 3m | 6m |
|---|---|---|---|
| Microsoft ($MSFT) | 1.50% | 5.90% | 13.30% |
Important note:
The opinions published in this article are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this report does not have an understanding of the individual situations of the reader, his or her own finances or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Opinions are published for informational motives onlyMicrosoft summary
| Friday, January 22nd, 2021 | |
|---|---|
| Open | $227.08 |
| Close | $225.95 |
| Day range | $225.8 - $230.07 |
| Previous close | $224.97 |
| Session gain | 0.44% |
| Average true range | $6.39 |
| 50d mov avg | $216.53 |
| 100d mov avg | $213.81 |
| 200d mov avg | $203.70 |
| Earnings date | January 26th, 2021 |