Antimonopoly transaction and analysts are aimed at the growth signal News ad

This really did not need a large increase, but Microsoft Corporation NASDAQ: MSFT Promotions received more good news in a week, when the market is looking for a direction. The last catalyst for shares is the news that the company will probably avoid fines from the antimonopoly legislation of the European Union in relation to Microsoft TeamsField

Microsoft Today

$ 452.57 -5.60 (-1.22%)

As of 04:00 on the East

52-week range

$ 344.79

▼

$ 468.35

Dividend yield

0.73%

P/e ratio.

36.44

Value is valuable

$ 512.63

In connection market dominance By including Microsoft commands in their office set, which includes signatures such as Word, Excel and Outlook. Microsoft proposed to offer an office set without commands at a lower price than when the commands are turned on.

In a message on the Microsoft VP blog for European state affairs, Nanna-Lyuz Linda called this proposal as a “clear and complete solution” for the concern of their competitors, and that Europeans will have more choice. Nevertheless, the EU says that he will look for reviews from competitors of Microsoft and customers before deciding on whether to make an offer. Interested parties have a month to provide reviews.

The first successful attack on the garden on the walls of Microsoft?

This case lasts since 2020, so it is not the best for many investors. However, Judicial claims Any duration can lead to income expectations. Over the past few years, Microsoft has already paid the EU of more than 2 billion euros or about $ 2.67 billion. Thus, at a time when income can be under pressure, Microsoft is useful to put this case.

That is why, based only on the heading of the proposal, it is reasonable to wonder why this should take so much time. The difference in the price between the two luxury is 8 euros, or about $ 9. While the title attracts attention, these are details that make the story more convincing.

Under Microsoft offerCompetitors will be able to interact with certain products and services of Microsoft for specific functions. They will also be able to introduce office applications (for example, Word, Excel, PowerPoint) into their products and integrate their products into Microsoft application applications.

This is important because the Windows operating system dominates the market and increasingly draws competitors to create Effect “Garden on the Walls” Because he lacks an open connection with other platforms.

This reputation was strengthened by introducing Teams And, more recently, these are AI initiatives with Openai. The deal with the EU, which will cover 10 years, is one of the steps, possibly a more open and attractive office set.

Does the MSFT stocks have a short -term impulse?

Like many technological shares, Microsoft shares increased sharply after reporting on May 1. Microsoft is worried Positive impulse as analysts bullish On strategic investments of the company in AI and cloud computing.

Nevertheless, skeptics believe that most of this growth is in price, and MSFT shares are returning to their April minimums. The fact that the shares are traded at the levels of bite reinforces this. The refusal of May 21 stopped his transition to the record maximum, which he made last summer. It can also end the seven -day series of victories and break the impulse of the action.

Additional support of movement below is the ratio of the P/E of the Promotion of about 36x, which is a small bonus to its historical average. In addition, the calculated increase in Microsoft’s profit per share (EPS) is 11.35% below a three -year average of 15.9%. From a technical point of view, the step below May 21 reduced the reserves below its 50- and 200-day average movements, which may be a sign that the change is on the spot.

Bye Short -term volatility There are strong foundations of Microsoft and the market position implies a favorable look for investors. Analysts continue to offer shares above. Microsoft analysts forecasts on Marketbeat give MSFT promotions A Moderate purchase rating With the target price of $ 512.63, which marks 13% of growth compared to its price on May 21.

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