What Do Madonna and Microsoft Have In Common???

rollandthomas (74)in #money • 8 years ago

The easy one is both Madonna and Microsoft start their name off with the letter, "M." Microsoft is one of the world's oldest and best known technology companies that exist. Madonna is one of the oldest (but she is like fine wine) and best known singers that exist. Madonna has had to reinvent herself throughout the years to stay relevant. Microsoft has also had to reinvent its over the years to stay competitive. Madonna has sold millions of tickets to her shows over the years.

Microsoft has sold millions of its products over the years. Million has fans from preteens to the elderly. Microsoft has fans from the every day person who uses their Office software to the gamers on Xbox.

Microsoft hit all-time highs last week rose after another great quarter. At least six brokerages raised their price targets on the company's stock. Microsoft has beat earnings estimates in every quarter since March in 2016. Microsoft is also up more than 20% so far this year and its share price is heading towards a sixth year in a roll of double digits gains.

The person to thank for Microsoft’s success in recent years is no other than Satya Nedella. Satya took over for Steve Ballmer back in 2014. Some say Ballmer was forced out due to Vista, Zune, Kin and a host of other flops under his tenure.

Before becoming CEO, Satya was Executive Vice President of Microsoft's cloud and enterprise group and led the company’s transformation to cloud infrastructure and services, better known as Azure. Since Satya has been CEO, Microsoft has more than doubled in value.

"Our early investments in the intelligent cloud and intelligent edge are paying off, and we will continue to expand our reach in large and growing markets with differentiated innovation," Nadella said on a conference call last week.

Microsoft gave potential investor two opportunities to get on board this year. One opportunity came in Feb when price pulled back into the monthly demand zone at $83.

The other opportunity came in when price pulled back into the weekly demand zone at $97 back in late June.

I think there is still some gas in the Microsoft tank. The daily chart is suggesting an opportunity to go long on a pull back into the daily demand zone at $104 or $102. However, my preference would be the lower daily demand zone at $102.