Account

New to ADSS? Open an
account now to get started.

OR

Already have an account?

Add funds to your ADSS account

Account

New to ADSS? Open an
account now to get started.

Add funds to your ADSS account

Trends & Analysis
News

US dollar surges to 7-week high on NFP data

News

Shares of Levi Strauss tumble amid weak sales

News

Crude oil breaches $70 amid geopolitical concerns

News

Will silver soar to $35?

News

Nike’s shares slide despite earnings beat

News

GBP/USD holds close to multi-year highs

Trends & Analysis
News

US dollar surges to 7-week high on NFP data

News

Shares of Levi Strauss tumble amid weak sales

News

Crude oil breaches $70 amid geopolitical concerns

News

Will silver soar to $35?

News

Nike’s shares slide despite earnings beat

News

GBP/USD holds close to multi-year highs

Asset Watch

Will the bears maul Microsoft?

Tuesday, July 25, 2023

It’s a big week of Big Tech earnings, as heavyweights like Amazon, Alphabet and Meta Platforms are set to report. And with Microsoft releasing its results after the bell on Jul. 25, the cloud-computing giant’s forward guidance will be heavily scrutinized.
Tesla and Netflix were valuation casualties last week, as sharp 2023 rallies left the stocks vulnerable to pullbacks. Both suffered material drawdowns as their earnings/guidance showed underwhelming expectations.
Microsoft announced new generative AI features for its 365 suite on Jul. 18, so investors will most likely want further details on its growth prospects. The Financial Times reported that AI subscriptions will cost 53% to 83% more, which should improve Microsoft’s revenue profile. However, if details are sparse, investors could view that as a sign of weakness.

What’s more, Microsoft confronts a do-or-die moment on the technical front. The stock ended last week near support from its 2021 highs but hasn’t gained much traction above this area. In addition, last week’s profound reversal created a shooting star candle, where a large wick gave way to a close near the lows. The pattern is bearish and often marks the end of rallies.

If Microsoft sells off like Tesla and Netflix, a buying opportunity could be present near the 20-week moving average ($312.24). The level essentially marked the bottom during every decline in 2021 and ended the March 2023 pullback.

So, will Microsoft exceed investors’ expectations, or is a correction on the horizon?


Site by Pink Green
© ADSS 2024


Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.

ADS Securities LLC (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates as a trading broker for Over the Counter (“OTC”) Derivatives contracts and foreign exchange spot markets. ADSS is a limited liability company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.

The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.

ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.