Is Microsoft (MSFT) Stock Prepping Up for a Major Comeback?

With a well-defined strategy in place, Microsoft’s CEO Satya Nadella continues to gradually improve his company's market position one partnership and acquisition at a time ; an approach which keeps yielding steady gains for the MSFT stock price.

Microsoft stock

Preceding Steve Ballmer, the previous chief executive officer of Microsoft Corporation (NASDAQ:MSFT) for about 14 years, Satya Nadella was appointed CEO on Feb. 2014, with the aim to make Microsoft square-off against other tech giants. With his leadership, in just 2 years, Microsoft has found the right direction again as a software and services company on any device — and the Street now believes the turnaround is real. In fact, Microsoft’s stock price has already surged by more than 61% in the last eight quarters, and it looks like the issue’s upside is just beginning.

While there’s still a lot that the software giant needs to do, the reality is that with Nadella’s work and smart approach to business, Microsoft now seems primed and ready to face the fast-paced world of the 21st century. With a keen understanding of where the company should be headed, Nadella continues to charm investors and traders alike. The CEO knows that Microsoft belongs in the office.  Despite other tech giants like Samsung Electronics, and Apple Inc. (NASDAQ:AAPL) branching out to multiple technologies, he states that the company’s main asset lies with office softwares like “Word”, and “Excel”.

Now you might ask, why would the stock price of Microsoft rise at an amazing rate in just 2 years? Well, we think this is mainly due to Nadella’s ability to restore consumer and developer faith in the company’s potential, and his successful efforts to partner up with other industrial giants like- General Electric Company (NYSE:GE), and Lenovo Group Limited (ADR) (OTCMKTS:LNVGY), while acquiring highly advantageous assets like LinkedIn Corp (NYSE:LNKD).

Microsoft is admittedly lagging when it comes to industrial-grade software. In order to compensate this weakness, they signed a partnership with General Electric, wherein the deal will serve as a definite advantage for Microsoft’s cloud computing platform “Azure”, which in turn is reflected in the rising gains of the company’s stock price.

Microsoft’s acquisition of LinkedIn, for $26.2 billion also served as a way to strengthen the company’s hold over a massive data pile concerning working professionals and business scene. The deal surprised most investors, which may have caused them to have a positive outlook for the company.

The Redmond, Washington-based firm also sealed a deal with Lenovo, a prominent electronics manufacturer in China. The partnership aims to solve the problem of diminishing demand for Microsoft products, wherein Lenovo will preinstall the main applications of Microsoft into their gadgets. The main apps include, “Office,” “OneDrive,” and “Skype.” With this move, M’soft aims to penetrate into the Chinese market which would be greatly beneficial for the company’s growth.

Stock Action

microsoft stock


A quick review at Microsoft’s charts reveals that the equity’s stair-stepping pattern remains intact. This can clearly be seen with the bullish convergence of the 50-day MA (red line) and 200-day MA (blue line) wherein the 50-day MA crossed over the 200-day MA, this crossover represents a formation that is called by traders as the “Golden Cross”, wherein it signifies the start of a major uptrend.

Also, the Money Flow Index (MFI), shows a healthy inflow of buyers and momo traders ranging at the high levels. With good fundamentals and a steady rise in its prices, MSFT is set on its way to break the 52-week high resistance at $58.5. If it proceeds to reach a new high coupled with an impressive volume, then investors and traders alike are all set for a bullish ride.

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