Adding to Our Microsoft Position on Weakness
| Symbol | Transaction Type (Sell/Buy) | # Shares Traded |
|---|---|---|
| MSFT | Buy | 43 |
After you receive this Alert, we will buy 43 shares of Microsoft ($MSFT) at or near $370. Following the trade, we will own 473 MSFT shares, accounting for roughly 2.9% of the Pro Portfolio’s assets.
Following our discussion of Microsoft earlier today, we are taking advantage of the pronounced pullback in MSFT to add additional shares for the Portfolio. Much like we said when we bought more shares of Palantir ($PLTR) yesterday, we recognize we may be a tad early on this move, hence it’s only being a small one. We also recognize the shares face multiple layers of technical resistance ahead starting near $400. However, that’s still a nice rebound from current levels.
Much like the conversation around PLTR we had with you yesterday, we continue to see Microsoft and its cloud position benefitting from the continued adoption of AI and its expanding usage across the enterprise and other user segments, including government. Comments from Micron ($MU) about when it sees memory chip supply-demand dynamics starting to improve as well as pending action by Samsung ($SSNLF) and SK Hynix suggest the demand for digital infrastructure far outweighs the supply.
That bodes well for further cloud bookings at Microsoft. And as the company is able to convert the $627 billion in remaining performance obligations (RPOs) it had at the end of March into revenue over the coming quarters, we should see cloud revenue remain on a growth path, leading margins to rebound over time.
As we make this move, we will revise our checkpoint on MSFT to $345 from $360.
(Please note that we are looking to execute these trades at or near the share price mentioned above. Once the trade is completed, subscribers can see the trade’s executed price here. Be sure to toggle the chart to sort by Purchase Date.)
At the time of publication, TheStreet Pro Portfolio was long MSFT, MU and PLTR.
| Symbol | Panic Price |
|---|---|
| MSFT | 345 |
