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MSFT Stock Price Today: Microsoft Corporation has three reasons to rise amid the coronavirus crisis

  • Microsoft's earnings report has been impressive, contrary to several other tech firms.
  • The ongoing coronavirus crisis will likely push its stocks higher. 
  • The chart is showing higher highs and higher lows – a bullish trend.

Microsoft corporation ended the week with a drop, alongside the broader stock market, but the adage "Sell in May and go away" may not apply to the giant from Seattle. Here are three reasons for the potential rise:

1) Strong earnings

Contrary to another tech giant from Seattle, Amazon, Microsoft's earnings beat all expectations. Revenues jumped by 16%, beating consensus by $1.2 billion. The operating margin of 37% is undoubtedly healthy, and cash flow of $17.5 billion also smashed projections.

Incomes of Azure, its cloud services, are up by 61% year on year despite fierce competition from Amazon's AWS.

2) A good crisis

Tech companies are winners from the crisis as people work from home. However, some phenomenons such as Netflix's jump in subscribers may fade when economies reopen. However, the company run by Satya Nadela will likely benefit in the longer term as well. The digital transformation will probably pick up as companies see that working from home has advantages. 

Aure is booming, its Teams product is putting up a fight to Zoom and Slack, and perhaps most importantly – Microsoft is not under the eye of regulators, contrary to Google and Facebook.

Returning to the shorter term, the third reason for the rise is technical. 

MSFT stock chart

In the past month, NASDAQ: MSFT has been benefiting a gradual and healthy increase, with each peak being higher than the previous one, and every valley also exceeding the one seen beforehand. Moreover, the recent earnings report came on only on April 29 and is yet to be priced by investors. 

Overall, Microsoft seems to be in good financial shape and well-positioned to continue growing. 

Author

Yohay Elam

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

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