Is Microsoft stock worth buying ahead of the software giant’s fourth-quarter report?

By: Motiur Rahman
Motiur Rahman
Md Motiur is a Financial Analyst at Invezz covering the North American, European and Asian stock markets. He has… read more.
on Jan 25, 2022
  • MSFT has earned plaudits for its successful transformation from desktop computing to cloud computing.
  • The stock has a Composite Rating of 84 out of 99.
  • However; Right now, MSFT stock is not a good investment.

Microsoft Corporation (NASDAQ:MSFT) has received accolades for its successful transition from desktop to cloud computing. As a result, MSFT stock has risen. However, many investors may be wondering if Microsoft stock is a good buy right now, following a recent pullback.

Azure infrastructure services, Office 365 productivity software, and Dynamics enterprise software are among the company’s current cloud products. LinkedIn, Skype, and GitHub are also owned by Microsoft.

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In addition, Microsoft has recently promoted the Metaverse, which is an immersive, next-generation version of the internet. Currently, the company produces HoloLens, which is a mixed-reality headset for remote collaboration.

MSFT stock technical analysis

Source – TradingView

According to the technical analysis charts, Microsoft stock achieved a purchase mark of $305.94 on Oct. 18 out of a flat base. On November 22, the shares of Microsoft hit a new high of $349.67.

The Relative Strength Rating for Microsoft is 84 out of 99. RS Ratings of at least 80 are characteristic of the finest growth stocks. The Relative Strength rating compares a stock’s price performance over the last 52 weeks to that of all other stocks.

According to many analysts, MSFT has a Composite Rating of 84 out of 99. The Composite Rating combines five independent proprietary rankings into one easy-to-use statistic. A Composite Rating of 90 or higher distinguishes the finest growth stocks.

Is Microsoft stock a buy right now?

Right now, Microsoft stock is not a good investment. Before it can set a viable buy point, it needs to form a new foundation in the right market conditions. Also, MSFT stock is trading well below its 50-day moving average line, which is a negative sign. 

Investors need to be patient with MSFT stock and also keep an eye on the stock market as a whole. And they should not try to fight the stock market’s general trend if it goes south.

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