Microsoft Stock Eyes Rebound Alongside Big Tech

$265 could be a key level for MSFT

Managing Editor
Jun 17, 2022 at 8:00 AM
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*Update* Since subscribers received this commentary on Sunday, June 19 , MSFT logged an 8% gain in the last week.

Swiftly brushing off last week’s steep -- and extremely volatile -- broad-market losses, Microsoft (MSFT) enjoyed a sweet entry into June 17, as of this writing. Also steering clear of sector peer Adobe’s (ADBE) unsettling post-earnings pullback, the tech powerhouse looks like it could be shifting into a ride of good fortune.

MSFT landed itself on the list of TD Ameritrade buyers just last month, and sits at a technically sound market cap level. Before the market’s 2020 Covid-induced selloff, Microsoft carried around a $1.5 trillion market cap value. After peaking at $2.5 trillion in the fourth quarter of 2021, the stock’s initial break of $2 trillion came last June. Now, the equity is back around the $2 trillion mark, indicating a flag of interest to the buyer’s market.

Just yesterday, Schaeffer’s Senior Market Strategist Chris Prybal pulled the stock’s value as $2-Trillion at $267.02, = 2,000,000,000,000 / 7,490,000,000 shares outstanding. Historically, its worth noting back in 1999 Microsoft stock reached its then peak value of $600 billion. This was not surpassed until the fourth quarter of 2017.

More recently, Microsoft has seen long-term resistance at the 20-day moving average. As mentioned by Schaeffer’s Senior V.P. of Research Todd Salamone as a "potential average entry price," the 20-day trendline sat near $265 at the end of May. The shares gapped lower on June 10, pushing the equity below Salamone’s retail average entry price from last month.

With the 20-day still visibly overhead, MSFT could be limited in its near-future market cap value. Additionally, despite recently changing stances on sever of Microsoft’s peers and the steep pullback in market value, the stock remains a favorite of the sell-side community, as 22 analysts rate the stock a "strong buy" or buy to only one "hold" rating. However, fellow Big Tech is also enjoying a rebound Friday, with all FAANG stocks shifting at least 1% higher, leaving much to the imagination of hopeful investors.

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Subscribers to Chart of the Week received this commentary on Sunday, June 19.

 

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