by Ian Harvey
November 27, 2019
Microsoft shares touched a brand new 52-week high and is now up 50% in 2019 and over 12% since it reported blowout financial results on October 23.
“Stock Options Made Easy” “Armchair Traders” members are already up 108% potential profits.
See where to now for Microsoft!
MSFT shares have easily outpaced all of the FAANG stocks over the past two years, up 80% against second-place Netflix’s 62% jump. Microsoft is one of only two publicly traded companies in the world that boasts a $1 trillion market cap, alongside Apple AAPL.
Under the guidance of CEO Satya Nadella—who took over in February 2014— Microsoft has expanded beyond Office and Windows to become a cloud computing giant. Along with its cloud success, MSFT has remained innovative within its legacy businesses as it continues to expand through acquisitions.
On November 08, 2019, I wrote an article “Microsoft Stock Is Consolidating! Still Time To Buy Before The Next Leg Up!” and suggested that it was time for traders and investors to prepare to execute a trade for the next incline.
Microsoft shares are holding near highs after the stock gapped up on October 28. Microsoft Shares were strong after the Pentagon awarded its Joint Enterprise Defense Infrastructure (JEDI) contract to Microsoft, worth up to $10 billion over 10 years. The contract was a big win for Microsoft as it competes with Amazon.com in the lucrative field of enterprise cloud computing.
“Stock Options Made Easy” "Armchair Trader" members had executed a trade on September 10, 2019, and are now enjoying a potential return of 108%; and more is on the horizon as Microsoft keeps the momentum going.
The Previous Recommended Trade on Microsoft.....
“Microsoft Corporation (NASDAQ:MSFT), the tech titan, has seen its shares gain +29.4% in the past year, outperforming the S&P 500’s’ gain of +2.4% during the same period. Microsoft is benefiting from growing user base of its different applications like Office 365 commercial, Dynamics, Outlook mobile and Teams. As well, Azure’s expanding customer base is a key catalyst.
Since 2011, the stock has soared 425% and now commands a premium valuation of 26 times forward earnings estimates. CEO Satya Nadella, who took over in 2014, has turned Microsoft into a great growth stock again by steering the company toward the massive opportunity of cloud computing services. Despite the rapid rise in the shares, the stock is still a buy because revenue and earnings grew at double-digit rates in fiscal 2019 (which ended in June), and there's still a tremendous opportunity for Microsoft to benefit from the rapid of adoption of cloud services.......read more.....”
** OPTION TRADE: Buy the MSFT JAN 17 2020 140.000 CALL at approximately $6.50.
YOU NEED TO BE IN TO PROFIT!
Past Earnings Report.....
The company reported fiscal first-quarter results on Oct. 23. Adjusted profit rose 21% from the year-ago quarter to $1.38 a share. Sales increased 14% to $33.06 billion, helped by a 36% increase in commercial cloud sales to $11.6 billion. The consensus estimate was for adjusted profit of $1.25 a share and sales of $32.23 billion.
Revenue at Microsoft's Azure public cloud business rose 59%, down from 76% growth in the year-ago quarter. But revenue from Windows commercial products and cloud services increased 26%, nice acceleration from 12% growth in the year-ago quarter.
Analysts’ Positive On Microsoft Shares.....
One equities research analyst has rated the stock with a hold rating, thirty have issued a buy rating and two have given a strong buy rating to the stock. The company currently has a consensus rating of “Buy” and a consensus price target of $159.45.
MSFT’s revenue is expected to surge 11% in both fiscal 2020 and 2021, while its adjusted earnings are projected to climb over 12% both years.
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Over the past two months, 12 earnings estimates have gone higher compared to none lower for the full year. Expect an above average return from the stock in the next few months.
Join us today and see what future trades will be recommended!
The questions remain......Will Microsoft shares Keep Moving Up?
What is the plan for members still holding options on Microsoft?
Will we recommend another options trade on Microsoft?
What will “Stock Options Made Easy” advise members to do?
AS ALWAYS THE DECISION IS YOURS!
An Important Note: That any suggestions for options trade considerations require investors/traders to use their own discretion as to when to enter or exit! As well, it is advisable to do further research and due diligence before executing your trade.
It is sometimes best to exit a trade, if there is already sufficient profit accrued, before an earnings report is presented. GREED can be the undoing of a nice profit!