Microsoft declined 5% in yesterday’s trading, to below $90 per share. Is this a good buying opportunity? The equity selloff among the top technology companies was instigated by Trumps's recent political announcement regarding tariffs on foreign goods. The magnitude of the impact is $60 billion tariffs on Chinese imports. The worst hit industries will be tech hardware and machinery. Beijing reacted by announcing its target--128 US projects which have an import value of $3 billion. This resulted in a 6% decline for the IT Sector. But Microsoft has a lot of things going for it. The recent increase in the company's margins has resulted from the adoption of Azure, Microsoft’s public cloud, more profitable channel distribution, and an ever-growing customer base. The hope is that Microsoft will have a $50 Billion EBIT by mid-2019. The firm anticipates doubling of the public cloud market to $230B by 2020. Morgan Stanley thinks Microsoft will hit a $1 Trillion market cap in the upcoming year. Such a rally over the course of this and next year would make MSFT go from the third largest public enterprise (only Apple and Alphabet and larger judging by market capitalization) to the largest one. Per Finstead Research, Microsoft has an average price target of almost $104. How do you think MSFT?
Let's see the fundamentals of MSFT, its quarterly revenue growth was 11.90%, higher than the industry and sector average revenue growth (9.73% and 7.00%, respectively). Besides, its profitability is improving. The YoY profit margin change was 3.88pp. I think MSFT stock price is still undervalued.
I've been long for about a year.... New electronics sanctions could see their growing hardware branch take a hit if China reciprocates, or worse yet, decides to slap tariffs on software. See what the damage is tomorrow and regroup from there.
%% Strong stock, strong sector,QQQ is also nice uptrend, 52 weeks also. Many sell in MAY, OK. BUT its dipping more below 50 dma lately, 52 weeks chart. Maybe fine for a med or long term trade; it tends to do better than average -MSFT up >5 %YTD
Wow, you must be a very professional and successful investor. Are you going to share your experience someday? Please let me know,
%% Pro?? Landon fisher, NOT in the SEC sense or NYSE definition; they are much stricter/hi data fees than M Webster LOL. I like the pro website investors.com= +elitetrader.com; + tech stocks + MSFT are up trending again , MSFT, tech leaders above 50 day moving average.............................................................[Edit =not a prediction]