JEFFERIES REITERATES DOWNBEAT VIEW ON MICROSOFT, STOCK FALLS
Microsoft Corp.’s stock is currently trading at 133.82-lower by 2.87% as compared to the previous closing price. In the pre-market trading session, the stock was trading lower by 0.28%. The stock has continued falling after the opening bell.
Investment bank Jefferies raised its price target on the company’s stock to $90 from $80. The investment bank, however, reiterated an Underperform rating for Microsoft. Jefferies believed that the company’s stock is materially overvalued. The investment bank also said that Microsoft’s Azure cloud-computing business will probably never see the margin broadly expected due to cultural and technical factors.
Jefferies further said Azure will likely never see margins similar to AWS at scale. Microsoft stocks have rallied around 35% so far this year.
On the technical front, the RSI is currently at 58.06% and suggests that the market can move in the downward direction. The current price is below the MA5. The current price is above the middle line of the Bollinger Bands but is heading downwards.
TRADE SUGGESTION- LIMIT SELL AT 133.92 TAKE PROFIT AT 133.22 STOP LOSS AT 134.27