MICROSOFT (#MICROSOFT) weekly special report based On 1 Lot Calculation:
ARTIFICIAL INTELLIGENCE:
- ARTIFICIAL INTELLIGENCE TECHNOLOGY CONTINUES TO GROW: According to the IDC, investments in Artificial Intelligence are expected to grow by 31% per year, to 251 billion dollars by 2027. Bloomberg estimates that the Generative Artificial Intelligence market could grow to 1.3 trillion dollars by 2032. The market is currently worth around 40 billion dollars.
- MICROSOFT IS A LEADER FOR ARTIFICIAL INTELLIGENCE PLATFORMS: According to recent data, Microsoft has introduced “BING AI” and Copilot for Microsoft 365. Previously, Microsoft has partnered with OpenAI, the developer of the most demanded AI application, ChatGPT. As of January 2025, ChatGPT has surpassed 300 million weekly active users, tripling the number recorded in November 2023. Since the platform also launched SearchGPT and GPT-4.5 Mini, ChatGPT users have reached an all-time high, showcasing the growing integration of AI in daily life.
MICROSOFT: EVENTS
- EVENT (JANUARY 29, AFTERMARKET): Q4 2024 EARNINGS REPORT. Microsoft is expected to print $68.874 billion in revenue for Q4 of 2024. This is an increase of 11% from the same period last year ($62.02 billion). In addition, the company is expected to post Earnings Per Share (EPS) of $3.13, which would be an increase of around 7% from the same period last year ($2.93).
- QUARTERLY REVENUE AND EARNINGS: LAST 8 QUARTERS. Microsoft has beat revenue expectations 7 out of the last 8 times. Microsoft has beaten earnings expectations 8 out of the last 8 times.
MICROSOFT: NEWS
- NEWS (JANUARY 21, 2025): TRUMP ANNOUNCES STARGATE, A $500 BILLION AI INFRASTRUCTURE PROJECT.
US President Donald Trump unveiled the Stargate Project, a $500 billion initiative led by SoftBank, OpenAI, and Oracle to develop AI infrastructure in the United States over the next four years. Microsoft is a key technology partner, leveraging its Azure platform to support OpenAI’s advanced AI models. The project aims to secure American leadership in AI, create 100,000 jobs, and drive global economic growth, with the first data center already under construction in Texas. - NEWS (JANUARY 15, 2025): MICROSOFT RELAUNCHES COPILOT FOR BUSINESSES WITH FREE AI CHAT. Microsoft unveiled Microsoft 365 Copilot Chat, a free AI-driven chat service designed to help users transition to the full Microsoft 365 Copilot. The service includes pay-as-you-go AI agents to automate tasks and manage inboxes.
- NEWS (JANUARY 6, 2025): MICROSOFT PROMOTES WINDOWS 11 MIGRATION IN 2025. During CES 2025, Microsoft declared 2025 as the "Year of Windows 11 Upgrade," urging users to transition from Windows 10 to ensure continued support and benefit from enhanced features.
- NEWS (SEPTEMBER 16): MICROSOFT ANNOUNCES QUARTERLY DIVIDEND INCREASE AND NEW SHARE REPURCHASE PROGRAM. Microsoft announced that its board of directors declared a quarterly dividend of $0.83 per share, reflecting an 8 cent or 10% increase over the previous quarter’s dividend. The board of directors also approved a new share repurchase program authorizing up to $60 billion in share repurchases. The new share repurchase program, which has no expiration date, could be terminated at any time.
MICROSOFT: PRICE ACTION
- STOCK PRICE ACTION: THE STOCK HAS FALLEN BY ABOUT 8% FROM IT'S ALL-TIME HIGH OF $468.35. Microsoft was last trading around $430, and if a full recovery follows to all-time highs, the stock could see an upside of around ~9%. However, the price could go lower.
- ANALYSTS OPINIONS: Arete Research forecasts $650. HSBC forecasts $554. Wedbush forecasts $550.
Jefferies forecasts $550. Morgan Stanley forecasts $548.
#MICROSOFT, January 22, 2025
Current Price: 435
|
Microsoft |
Weekly |
|
Trend direction |
|
|
650 |
|
|
550 |
|
|
470 |
|
|
405 |
|
|
400 |
|
|
390 |
Example of calculation based on weekly trend direction for 1 Lot1
|
MICROSOFT |
||||||
|
Pivot Points |
||||||
|
Profit or loss in $ |
215,000.00 |
115,000.00 |
35,000.00 |
-30,000.00 |
-35,000.00 |
-45,000.00 |
|
Profit or loss in €2 |
205,725.98 |
110,039.48 |
33,490.28 |
-28,705.95 |
-33,490.28 |
-43,058.93 |
|
Profit or loss in £2 |
173,780.20 |
92,952.20 |
28,289.80 |
-24,248.40 |
-28,289.80 |
-36,372.60 |
|
Profit or loss in C$2 |
307,838.08 |
164,657.58 |
50,113.18 |
-42,954.15 |
-50,113.18 |
-64,431.23 |
- 1.00 lot is equivalent of 1000 units
- Calculations for exchange rate used as of 10:15 (GMT) 22/01/2025
There is a possibility to use Stop-Loss and Take-Profit
- You may wish to consider closing your position in profit, even if it is lower than suggested one.
- Trailing stop technique could protect the profit.