Microsoft is trading at $248.37 a share. Major resistance sits at $252.63 with key support below at $239.09. Indicators are currently positive.
Overview
Microsoft Corporation is a multinational technology company with its headquarters in Redmond, Washington, in the United States. It produces computer software, consumer electronics, personal computers, and related services.
Financials
Comparing Microsoft’s 2022 financial year which ended on the 30th of June against 2021. Its revenue rose from $198.27bn from $168.1bn and its gross profit rose to $135.62bn from $115.86bn. EBITDA went up by $16.24bn and net income went up by $11.47bn, as a result, earnings per share increased by $1.58 to $9.70 for the year. Total assets jumped by $31.06bn and liabilities only increased by $6.51bn, the strong rise in assets offsets the rise in liabilities which is an important factor for Microsoft. However, its cash-on-hand pile has fallen by $25.58bn, as result, its total current assets fell to $169.68bn. But as mentioned above, overall total assets continue to show gradual increases year-on-year. Additionally, due to the solid figures above, shareholder equity went up to $166.54bn in 2022 from $141.99bn in 2021.
Technicals
From a technical aspect, Microsoft’s stock is currently trading at $248.37 a share. Towards the upside, resistance sits at $249.81 then at $250.57 then a key resistance level sits at $252.63. A break above the key resistance level could see the share price hike towards the upper trendline of the channel, where the next key level sits at $265.39. Towards the downside, support sits at $244.11 then at $241.23 then at $239.09. A slip below these support levels may see the stock’s price fall back towards the lows of the year. Looking at the indicators, MACD is currently positive and so is RSI as it reads 58.
Summary
Based on the technicals, Microsoft’s stock has added some gains since the first week of November. Both indicators are currently appearing to be positive, suggesting further bullish price movement. However, Microsoft is still down 26% for the year. Nevertheless, financials are strong year-on-year with business operations likely to grow into the future as the company continues to operate with a high-profit margin while generating more revenue. Furthermore, the cash-on-hand pile has seen a drop, but the rise in total assets offsets both the decrease in cash and the increase in total liabilities. As a result, based on the financials and technicals, Microsoft’s stock could recover from 2022’s downfalls in the long term.
