Why isn't Microsoft stock higher.?
It's analyst ratings are high -stockscouter 10, earnings are great, target is $40...what's up? I know this is not a good time for the market, but other stocks go up, why not ms?
- 1 decade agoFavorite Answer
The market is driven by fear and greed. In a down market everyone runs out of fear, in an up market everyone buys out of greed. This results in buying high and selling low.
The current market has some of the best deals ever seen. most of the S&P has strong financials, low P/E ratios, large cash reserves, etc. Yet people are selling and dragging prices down with them. I could pull 50 stocks in 10 minutes that have the same characteristics you just mentioned for Microsoft, and there wouldn't be an answer for them either. Stock picking is only partially tied to the charts and data - there will always be a human element that will cause the stock to do something different from what you were expecting.
Let's look at the last two weeks -
The federal reserve cut rates by 0.75 and the market dropped?!? "They" were hoping for more.
Then yesterday they announce the worst fall for new home starts in decades and the market did what - it went up?? Why, because "They" view that as positive news because it may force the fed to cut rates again.
All of this has a bigger impact on Microsoft than P/E, target prices, ratings, or anything else you can find on stockscouter.
- 1 decade ago
Ripple effect from Bill Gates' anti capitalism speech last week. Press had a field day. EVEN THOUGH second quarter earnings jumped 79% with over 100 million Vistas sold! (however... MSFT over all option volatility of 28 is above its 6-month average of 24 according to Track Data, suggesting larger risk.)
- Anonymous1 decade ago
Too many shares outstanding