Unzip the latest Microsoft stock milestones
It’s been a while since we checked market caps in this area, and by a while we mean just a few weeks. It has also been some time since we contacted technology leader Microsoft (MSFT). Given the recent headlines and milestones, I wanted to dig deeper into the impact of MSFT as the second company to hit $ 2 trillion in market cap – after Apple (AAPL, of course) – and weigh some of the impact of news reports that possibly fuel this recent surge.
Microsoft could unpack the $ 2 trillion market cap milestone first and view that level as support for the weeks and months to come. Additionally, MSFT has a price-to-sales ratio of 13, a high number compared to AAPL’s 8. The graph below shows Microsoft’s long-term market capitalization move since 2011 – the stock has shown an impressive growth pattern that is keeping pace with that of its stocks Shares. The two continue their run head-to-head, with market capitalization growth rarely leading to declines.
The company’s interest in buying the Discord online streaming platform is to address some of the news that made the headlines for Microsoft over the last month. Back in late March, Bloomberg reported that the tech giant was in talks to buy Discord for more than $ 10 billion. Discord has reportedly reached multiple buyers, and VentureBeat said the company is in final sales talks with at least one party. However, another person familiar with the matter said the company was more likely to go public. That craze brought MSFT near $ 240 for the first time since February, but simmered this past Tuesday, April 20, when Reuters and several other media outlets reported that Discord had decided to independently grow its business. That update did little to sway investors, however, as MSFT stayed within a chip shot of its April 19th and then hit a record high of $ 261.48.
Even younger was that Microsoft shares received a new bull’s certificate from Wolfe Research on Thursday evening. Analyst Alex Zukin began reporting with an “Outperform” rating and a price target of $ 290. An optimistic approach, considering that Zukin’s price target has a 12.8% premium over the stock’s closing price on Thursday. That doesn’t mean Microsoft’s impressive midday surge to a new high of $ 261.78 earlier in the day, however. Zukin cited that the company appeared to be fully appreciated “on the surface” but was one of the few names to continue its growth “in the black” over the coming months.
For the contrarian trader, however, there is still room for further capital appreciation, as four covering brokerage firms are still making a lukewarm “hold” recommendation for Microsoft shares. Also, now seems like the ideal time to bet on MSFT as options look like an affordable purchase. This corresponds to the Schaeffer’s volatility index (SVI) of the stock of 26%, which is in the 19th percentile of its annual range, suggesting that option players are currently pricing in lower than usual volatility expectations.
Bernie Schaeffer’s subscribers Chart of the week received this comment on Sunday April 25th.