. Stock News - Microsoft Corp Forecast And Technical Report - 13 October 2022

Stock News – Microsoft Corp Forecast And Technical Report

13 Oct 2022

Microsoft Estimates Lowered on ‘Steepest PC Decline in Two Decades’

Credit Suisse lowered its estimates for Microsoft (NASDAQ:MSFT) on Wednesday, stating that high inventory levels and economic uncertainty are resulting in the “steepest PC decline in two decades.”

“IDC and Gartner released PC shipment data for Q3 2022 showing a historic slowdown in the PC market. Gartner (sell-through) and IDC (sell-in) reported shipment declines of 19.5% and 15.0% year-over-year for Q3, respectively, versus declines of 12.6% and 15.3% year-over-year in Q2 and compared to increases of 1.0% and 3.9% in Q3 2021,” wrote Credit Suisse analysts.

“In comparison, Microsoft’s management provided guidance for Windows OEM revenue for the September quarter to decline in the high single-digits. Consensus estimates for Windows OEM revenue growth currently forecast an 8.0% y/y decline.”

The analysts wrote that the September quarter estimates represent the steepest market decline since Gartner began tracking the PC market and the fourth consecutive quarter of year-over-year declines.

Even though the supply chain tightness and disruptions have eased, the PC market now “faces increasing inventory levels combined with weakening demand in both the consumer and enterprise,” added the analysts.

MICROSOFT CORP. Technical Analysis: Daily Chart

In the daily charts, MICROSOFT CORP. is trading in down channel. MICROSOFT CORP. is currently trading below all SMA.

RSI is in selling zone which indicates bearishness. MACD is currently below zero which indicates bearishness.

Its immediate support is 223.56 & the resistance level is at 228.54.

MICROSOFT CORP. will trade in down channel until there is trend reversal.   

How to Trade MICROSOFT CORP. this Week:

MICROSOFT CORP. will follow the down channel until there is trend reversal. So, remain bearish on MICROSOFT CORP..

TRADE SUGGESTION- SELL AT 226.63, TAKE PROFIT AT 223.56 AND STOP LOSS AT 228.54