MSFT Stock Forecast: Microsoft Corporation shares recover as content debate continues

  • MSFT the tech stock that markets forgot?
  • MSFT shares are up a solid 5% so far in 2021.
  • Microsoft Teams has been a pandemic essential for remote workers.

Microsoft is a technology company, need we say it! It is synonymous with most laptops and PCs as the underlying system and Microsft Edge is a popular internet browser. Microsoft also has significant cloud operations. Microsoft Teams has become essential for office workers working from home during the pandemic. While Zoom (ZOM) caught the imagination for social use, Microsoft Teams was the platform of choice for most workplaces. 

Microsoft MSFT Stock Chart


Microsoft has generally followed broader markets higher from the March lows, trending nicely with Nasdaq and S&P 500. While it may have lagged some of the more stellar performances in tech it has still returned positive gains to investors. Recently markets have seen weakness in tech names as investors look to take profits on those strong gains from the March 2020 lows. Investors have looked to switch into more cyclical, consumer-orientated names as the economy in the US and globally look set to reopen come H2 2021. 

Inflation concerns have also played on investor's minds as the US 10 Year heads for a 1.5% yield, although Federal Reserve Chair Jerome Powell has done his best to dampen these fears for now.

All this had led to some bearishness creeping into the chart with MSFT losing the 21-day moving average which has held as support for most of 2021. MACD also gave a crossover sell signal, leading to two days of losses with MSFT moving from $243 to $228.

However, we now have a bullish engulfing candle from yesterday in most broader indices, and as can be seen, Microsoft is also looking more bullish on the chart. The first target would be to close the gap up to $240 and then regain the 21-day moving average. 

See all Equity News

MSFT Stock News

While the chart may be looking slightly more bullish for Microsoft, the newsflow has been mixed. According to Reuters on Tuesday "Microsoft Corp MSFT.O has notified 60 customers that their data was likely compromised in the suspected Russian hacking campaign centered on Texas-based software firm SolarWinds Corp SWI.N, the company’s president told U.S. lawmakers on Tuesday". Microsoft has also been in the spotlight recently as part of the Facebook and Australia media content story. While Facebook and Australia did reach an agreement on content there were some difficulties along the way. Microsoft teamed up with EU publishing groups on Monday, Reuters reports that Microsoft and European media groups want the EU to require arbitration in any disagreements in revenue sharing with news publishers. Microsoft also teamed up with Adobe, BBC, Intel, ARM, and Truepic to try to create certain standards in order to negate misleading content.

Microsoft Stock Forecast

While MSFT is a more established tech company and not in the hyper-growth stage, it has multiple strong revenue streams, solid management, and strong experience and knowledge of its industry. Moves by US and EU regulators, concerned about the impacts of Big Tech, may benefit Microsoft in so far it has not been in the crosshairs like other Big Tech companies have. EU lawmakers are due to discuss ways to rein in Big Tech as governments around the world try to adapt to the changing face of media. Microsoft may be ahead of the curve here and may avoid the glare of lawmakers scrutiny, giving it an edge over Big Tech rivals.

The author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

This article is for information purposes only. The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice. It is important to perform your own research before making any investment and take independent advice from a registered investment advisor. 

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to accuracy, completeness, or the suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. The author will not be held responsible for information that is found at the end of links posted on this page. 

Errors and omissions excepted.





Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Get Weekly Crypto trade ideas!  
Empower yourself with the best market insights

Join FXStreet Premium!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD retreats from 1.20 amid mixed US data

EUR/USD has retreated from its move toward 1.20 as US data is mixed. Building Permits and Housing Starts beat expectations but Consumer Sentiment missed with 86.5 points. Vaccine news is eyed.


GBP/USD battles 1.38 as US yields halt their falls

GBP/USD is trading around  1.38, off the highs as US Treasury yields are stabilizing after falling beforehand. US data is mixed. Sterling continues benefiting from Britain's vaccination campaign.


Stellar bulls on wrong side of uphill battle

XLM price has erected an ascending parallel channel on the 4-hour chart. A bounce from the setup’s lower trend line, although logical, seems unlikely. Stellar’s bear flag pattern on the 1-hour chart adds weight to the bearish outlook.

Read more

XAU/USD climbs to the highest level since Feb. 25, beyond $1,780

Gold gained strong follow-through traction for the second consecutive session on Friday. The USD struggled to capitalize on its attempted recovery and benefitted the commodity. Rebounding US bond yields, the risk-on mood did little to hinder the positive momentum.

Gold News

Gamestop waits for breakout signal, technical levels to watch

GameStop is struggling for relevance as COIN takes over! GME shares under pressure, down 6% on Thursday. GME is looking for a new CEO according to Reuters.

Read more