Microsoft (MSFT)
MSFT earnings and long term predictionI am going to long MSFT for these reasons
~We have officially touched the 0.786 fib retracement which is a great sign to go long again
~MSFT earnings on Tuesday. MSFT bought out Activation Blizzard, so it will be interesting to see how they announce their plans.
~ALSO A while back, Mojang merged Minecraft launchers with Microsoft. SO now all minecraft java users use Microsoft login instead of mojang login.
~On the 4 hour chart there is VERY CLEAR BULLISH DIVERGENCE
~From the last ATH MSFT has pulled back 15 percent, which is a really big pullback.
~We are also on the bottom of the downward wedge, meaning that this will be a good zone to set enter with a SL below the support. As it is a very small loss. With downward wedges, it most likely will break on the up.
Microsoft's Descending Wedge Yesterday, Microsoft posted better-than-expected earnings for Q4, which is likely to help the reeling stock rebound. The correction is likely to be terminated around the previous swing low at 280.00 where a descending wedge is expected to be completed.
The first obstacle for the eventual rebound would be the 23.6 per cent Fibonacci retracement level at 293.39, which is currently converging with the 400-day MA (in purple). The next target would be the 38.2 per cent Fibonacci at 304.17.
In addition to the fact that it was recently crossed by the 300-day MA (in red), the resistance is positioned just above the psychologically significant threshold at 300.00. All of this implies the probable accumulation of strong selling pressure just above the 38.2 per cent Fibonacci.
Trading Options - CALL optionsIt is my logic to trade options, CALL option
Steps:
Crawl options data to get "date change" every day
I will focus on the third expiration, ex: this week 01/07/2022 then expiration to trade: 01/21/2022
I will alert as overchange of 5 days of any strike over +150% then I will follow this one
Setting up indicators: EMA5, EMA10. If price > EMA5 and EMA5 cross up EMA10 then I will CALL
I tried and won some cases.
The above logic is an example very simple to trading CALL options.
A forecast for the next 2 weeks!Another 5-10% correction is highly likely for Microsoft in the next 2 weeks!
Best,
Moshkelgosha
DISCLAIMER
I’m not a certified financial planner/advisor, a certified financial analyst, an economist, a CPA , an accountant, or a lawyer. I’m not a finance professional through formal education. The contents on this site are for informational purposes only and do not constitute financial, accounting, or legal advice. I can’t promise that the information shared on my posts is appropriate for you or anyone else. By using this site, you agree to hold me harmless from any ramifications, financial or otherwise, that occur to you as a result of acting on information found on this site.
MSFT Microsoft TrendlineMicrosoft’s buyout of Activision Blizzard for $69 billion would be the largest tech deal of all time.
And Microsoft needs Activision to be a major gaming developer and metaverse competitor.
Microsoft is still in the bullish trendline before the earnings this week.
My price target is $331.
looking forward to read your opinion about it.
Will the 200 day EMA save Microsoft? Microsoft looks technically interesting. On one hand a double or even triple top argument could be made that flushed the stock down lower after it rallied to break a multi-year resistance TL but failed to hold it, and on the other hand it has not made any multi-month lower lows since September 2020. Stock holders are hoping that 294 will find buyers at the 200 day EMA ahead of earnings but it does not appear that there are any buyers in-sight just yet. 289/290 if reached next week will coincide with March 2021 TL support followed by much bigger support around 280/282 if we get there, where major bounces are expected. The intriguing question will be if buyers are willing show up aggressively under the 200 day to act on these supports because if not, 260 will not be far from reach. Upcoming earnings will determine the longer-term picture.
Is Microsoft in a bubble? Is it overvalued? Judge for yourself.
Microsoft PE Ratio as of January 21: 33.11
PE Ratio Range in the Past 5 Years:
Minimum: 22.35, JUL 03 2017
Maximum: 62.43, MAR 12 2018
Average: 34.68
Median: 32.84
Microsoft | Fundamental Analysis | SHORTOn Tuesday, Microsoft announced its intention to acquire video game giant Activision Blizzard in a deal worth $75 billion, or $68.7 billion based on Activision's net cash position. That corresponds to a price of $95 a share, up from Activision's share price of $65 last Friday, but still below Activision's 52-week high of $104.53.
If the deal passes antitrust scrutiny, it could be a clever move. In fact, the deal is reminiscent of Warren Buffett's approach to value investing at his Berkshire Hathaway conglomerate. Given Buffett's close friendship with former Microsoft chairman Bill Gates, it is not surprising that Microsoft is making reasonable acquisitions at reasonable prices during its mature growth phase.
Activision Blizzard has a leading portfolio of video game franchises, including Call of Duty, Candy Crush, Overwatch, and many others. With such a high market capitalization, it is one of the world's largest pure-play video game developers, ranking fifth in total game revenue worldwide.
Recently, however, the company found itself "on the operating table," so to speak. Last summer, California regulators filed a lawsuit against Activision, accusing it of widespread sexual harassment and gender pay inequality. In November, about a fifth of Activision's employees signed a petition urging CEO Bobby Kotick, who has led the company for more than 30 years, to leave. Although the company has taken various steps to correct apparent misconduct, including firing or disciplining more than 80 employees and altering some internal rules, Activision stock has not recovered and is down more than 35 percent from its February 2021 highs.
Although Microsoft is paying a substantial premium to last week's market price, the valuation is about 25 times this year's average earnings estimate of $3.80. If you pay attention to Activision's net cash position, the valuation drops to about 23. That's a pretty reasonable price for Activision's "drama-free," given the strength of its franchises and the way it has traded in the past.
Even if Microsoft gets a reasonable price for a separate Activision, Activision could be even more profitable in Microsoft's hands than as an independent company.
Given the turmoil in Activision's management, The Wall Street Journal reported that Kotick is likely to leave his post after the deal closes. Thus, new leadership and a culture change at Activision itself could help bring key talent and reinvigorate the business after the current employee crisis.
And just as streaming video platforms are spending heavily on their own content, video games, too, are moving to a subscription-based streaming package model. CEO Satya Nadella has doubled down on spending on native content for Microsoft's Game Pass, which Microsoft said in a press release reached more than 25 million subscribers, up from 18 million in early 2021. Activision itself has 400 million monthly active players, so it's reasonable to assume that some of those users will switch to Game Pass, which Microsoft promotes as "Netflix for gaming."
Finally, in an interview with CNBC on Tuesday, Kotick said that as games increasingly move into the metaverse, gaming companies will need technology expertise that Activision may not have, and it will probably be difficult to attract from the big tech companies -- especially given recent employee problems. Therefore, it does make sense to sell the company to a large tech giant with a variety of technology expertise. Microsoft, of course, has such expertise in abundance, thanks to its Azure cloud platform, Xbox gaming platform, and Hololens AR/VR headset.
While the ZeniMax acquisition went off without a hitch, Microsoft may be pushing the limits of its acquisition capabilities with this deal, given Activision's sheer size. At the time of writing, Activision's stock was only trading to the $82 mark, which leaves a lot of room below the $95 acquisition price. This seems to indicate a certain amount of skepticism about completing the deal.
Microsoft has been very good at avoiding antitrust regulators in Washington, who are instead mostly going after other FAANG stocks, particularly those related to social media. However, Microsoft is also not done with two other noteworthy acquisitions in the process in medical AI and advertising technology. Given the speed and size of the new deals, Microsoft could face a lot of resistance to buying Activision.
Nevertheless, if the deal goes through, it's a huge win and terrific use of the enormous $130 billion cash pile on Microsoft's balance sheet. Microsoft is doing great in the cloud computing and enterprise software markets, and that business alone would be enough for management to rest on its laurels. But to see management working hard to grow its consumer-oriented businesses -- search advertising and video games -- is refreshing. First-rate capital allocation and relentless pursuit of growth is another reason Microsoft deserves its high praise.
MSFT flat correctionElliott wave analysis view for MSFT suggests the decline from November 22, 2021 high is unfolding as a flat correction.
It turned out to be quite an interesting structure. Down from November 22 ATH wave (w) ended at 328.2 as simple ZZ, and rally in wave (x) is expanded flat ended at 343.86 (as we know each reactionary wave, labeled X, can take the shape of any corrective pattern). Wave (y) is ZZ and ended at 317.2. So we have complete WXY combination as a part of wave of flat. Rally in wave ended at 344.3 with internal subdivision as a ZZ. Final leg wave ended at 300.63 as ending diagonal and it has extension 1.272 from wave .
In terms of technical analysis, we have a price stop near the strong level of 305 and a good demand zone from 300.. There is also convergence of price and RSI indicator.
I can assume that wave 4 has probably ended and the formation of sub-waves of the 5th wave will soon begin.
Activision (ATVI) Take profitActivision (ATVI) Take Profit
Time to take profit
After the news of the acquisition by Microsoft for nearly 70 billion dollars, Activision (ATVI) jumps to + 32% from the close on January 14.
If you followed me you will know that my average price was $ 70.71 and at the opening on 1/18, I sold the entire position, taking home the profit, with a gain of 22.64%.
Another good trade to start 2022, which saw me in drawdown for most of the trade.
Obviously, I'm not saying that I expected this, because my trading has always been transparent and visible to everyone, I am one of the very few who says things before doing them and if the reasons why I invested in Activision are well explained in previous posts, but clearly, I was expecting a reversal, even a violent one, but not a 32% gap up. This acquisition, which among other things adds yet another arrow to Microsoft's bow, was not expected and, as far as I'm concerned, I didn't even have any rumors.
A huge trade, therefore, it would have been even more profitable if the price had touched $ 55, where I would have mediated the price further.
Happy trading,
Lazy Bull
DISCLAIMER: I am not a financial advisor nor a CPA. These posts, videos, and any other contents are for educational and entertainment purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments.
Microsoft (MSFT) | The safest place to buy🔥Hello traders, Microsoft in daily timeframe , this analysis has been prepared in daily timeframe but has been published for a better view in 2 day timeframe.
It is better not to talk about the general nature of this wave and only explain the counted part of the wave.
Based on the counting of the first wave 1 and 2, it has ended in a very normal state and now we are inside the third wave.
From wave 3, waves 1, 2, and 3 are completed, and now wave 4 is formed. As we previously thought, wave 4 was formed in the form of a flat, and from this flat, waves a and b are completed, and the structure of wave c is formed.
Wave c is at the end of its trend, both in terms of the number of waves and the ratio between waves a and b of the flat, as well as the ratio of the depth of this correction to wave 4, but the probability of correction to Fibo will be 0.38 and then the wave starts breaking the green circle. 5 is approved.
This analysis is also fielded if the trend moves beyond the resistance indicated by the warning sign.
🙏If you have an idea that helps me provide a better analysis, I will be happy to write in the comments🙏
❤️Please, support this idea with a like and comment!❤️
Microsoft ATVI Merger Arbitragewww.engadget.com
Microsoft just made one of the largest-ever bids for a game studio. The company has announced plans to acquire Activision Blizzard for $95 per share, valuing the all-cash deal at an enormous $68.7 billion. The deal would make the combined entity the "third-largest" game company by revenue, according to Microsoft, and would put titles like Call of Duty, World of Warcraft and Candy Crush under the company's wing. Microsoft plans to add Activision Blizzard games to Game Pass as part of the deal.
...
The buyout is expected to close sometime in Microsoft's fiscal 2023 (no later than June 2023) if regulators and Activision Blizzard shareholders greenlight the move. The boards of directors for both companies have already approved the deal.
Activision Blizzard NASDAQ:ATVI stock has been hammered off its 2021 high amid scandals and the broader tech selloff. I've been an avid gamer and fanboy of Blizzard IP since I was a kid but I'll put all that aside and just look at this from the standpoint of a merger arbitrage opportunity.
What is a merger arbitrage? It is a trade that is a bet that the deal will go through as planned and the investor will be paid the final price of the shares. Microsoft announced that they will buy out all shares of ATVI for $95/share at the closing of the deal June 2023 at the latest. That means on the closing of the buyout every outstanding share will be purchased. If you have shares of ATVI now or buy them before the closing you will be bought out of them for $95. That is true if the deal goes through.
So the trade is that the deal will go through without any problems and any shares will be worth $95 at closing. At the current share price as of writing (89.92) that presents about a 16% premium. The question a trader should ask;
"Am I will to accept a return on my capital of 16% over 18 months... with the risk that the deal may not be approved by regulators or shareholders?"
ATVI Merger Arbitrage - Risks and ReturnsAs a followup to my post earlier today I wanted to give some additional perspective on past Merger Arbitrages, both good and bad, using the Baxter NYSE:BAX buyout of Hill-Rom last year and the failed buyout of Rite-Aid NYSE:RAD by Walgreens NASDAQ:WBA in 2015.
MSFT TO RALLY TO .786 336 TARGET I have covered my short qqq and spy this morning . I have now moved to a net long 50 % in msft nvda and will add to 75 % net long on stop above this morning highs I see a double zig zag forming up and down so I will now look for a sharp rally if this is correct to a .786 of the drop for wave X
QQQ Forecast for the next 2 weeksCorrection in the market usually has complex patterns!
I think from a price action point of view, there is a very good chance we see a bounce in the Tech sector in the next 2 weeks!
Option data analysis:(These data needs to be updated everyday)
Put/Call OI: 2.13 for the next month
Option wall: 370-400
Maximum pain: 385
Forecasts for Giant Tech companies, based on this:
AAPL:
MSFT:
GOOG:
AMZN:
TSLA:
FB:
NVDA:
AMD:
CRM:
NFLX:
ORCL:
SNOW:
TWTR:
PLTR:
You can see the most important support(green line) and resistance (red line) levels.
Best,
Moshkelgosha
DISCLAIMER
I’m not a certified financial planner/advisor, a certified financial analyst, an economist, a CPA, an accountant, or a lawyer. I’m not a finance professional through formal education. The contents on this site are for informational purposes only and do not constitute financial, accounting, or legal advice. I can’t promise that the information shared on my posts is appropriate for you or anyone else. By using this site, you agree to hold me harmless from any ramifications, financial or otherwise, that occur to you as a result of acting on information found on this site.
*You can see the most important support (green lines) and resistance (red lines) to watch in the coming days in these charts!(Based on Option wall data)
**Yellow line Shows Maximum Pain level.
***You can see more details and educational materials by reviewing the previous posts!