The pullback in tech stocks may finally be over.
If so, keep an eye on oversold shares of Microsoft (MST).
Not only is MSFT holding double bottom support dating back to early 2021, it’s starting to rebound from oversold RSI, MACD, and Williams’ %R. From a current price of $258.86, we’d eventually like to see the stock retest $320 a share.
Helping, Citi analyst Tyler Radke note that the software sector “de-rating is mostly done,” as quoted by TheFly.com. The analysts also noted that MSFT is one of their top picks.
Credit Suisse also says the Microsoft Azure growth opportunity is not reflected in estimates.
As noted by TheFly.com:
Credit Suisse analyst Phil Winslow expects Microsoft Azure (MSFT), as the “enterprise cloud,” to disproportionately benefit from accelerated shift to the public cloud and anticipates, as a result, Azure to continue to narrow the revenue gap to #1 Amazon Web Services (AMZN), AWS, and widen the gap to #3 Google (GOOGL) Although Wall Street remains largely positive on Microsoft, Winslow believes the full multi-year impact of Azure’s growth opportunity is still not properly reflected in consensus estimates.
Again, we’d like to see the MSFT stock recover to $320, near-term.