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The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
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Microsoft Shares Hit Crossroads Ahead Of Earnings

Microsoft (MSFT) shares are at a crossroads ahead of the latest earnings release.

MSFT – Weekly Chart

MSFT – Weekly Chart

The price of MSFT has been rejected at the $292 level, and a bearish earnings report could see the stock fall further. 

Microsoft’s earnings are expected to slow on sluggish demand for cloud services. The Redmond, Washington-based company is scheduled to release earnings of $16.7 billion, or $2.24 a share, which would be flat on the year.

Investors will be focused on the cloud services segment, but they will also be keen to see the impact of the ChatGPT product. Microsoft has committed much money to the bot and pivoted the business model there.

Microsoft CEO Satya Nadella will be expected to face questions about the future of Microsoft’s AI and the impact of the recent cost-cutting measures, where 10,000 staff were cut.

“The next major wave of computing is being born, as the Microsoft Cloud turns the world’s most advanced AI models into a new computing platform,” he said in last quarter’s earnings releases.

Microsoft (MSFT) Running Out Of Options

Microsoft extended its partnership with the ChatGPT creator OpenAI in January, investing a reported $10 billion in the company. Microsoft’s AI-enhanced search engine, Bing, has also been gaining ground on Google, with 100 million daily active users for the first time in March. However, despite the AI buzz, analysts expect search and ad revenue to grow just 4% in the last quarter, compared with the 22% growth for the previous year.

Microsoft stock touched a 14-year high recently, with a 20.40% gain for the year. The store is slightly ahead of the S&P 500 Information Technology index, which rose 20.13% in the same period.

Traders can look for a bearish earnings release for further selling. A breakout of the recent resistance would create a bullish outlook.

Last Updated: 24/04/2023

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

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