Despite the negative news and worrying headlines, we recommend traders to make mental reframing of the situation. This way, you can look at the market from a different perspective. Let’s observe how you can take advantage of the uncertainties and make the fundamentals work for you!
Google surprised with earnings, Microsoft - not so much
Information is not investment advice
Two stock giants – Microsoft and Google – have published earnings reports for the first quarter of 2021. Both reports are better than expected! Google was expected to deliver $15.45 earnings per share, the actual data was way better: $26.29. The market forecast for Microsoft was $1.76, and the tech giant beat that estimate with $1.95. Google gained from ad sales and internet search. Microsoft mostly benefited from the cloud-computing product, Azure and big gains for Xbox helped as well.
By the way, the stock market is open from 16:30 to 23:00 MT (GMT+3).
How to trade on earnings?
Since the earnings data was great, the stocks are likely to rise. However, Google has more chances than Microsoft. Google’s data pleasantly surprised investors with such a big increase, while Microsoft data wasn’t so good. Yes, it was better than the forecast, but not so much.
To get more tips about trading stocks, read our special guide “How to trade on earnings reports?”
Microsoft hit an all-time high yesterday, breaking above $260.00. Therefore, the way up to the next round number of $270.00 is open. However, the RSI indicator is just below the 70.00 level. Once it breaks above this level, the stock becomes overbought and the reverse down may occur. Thus, be aware of the support levels at the low of April 14 at $255 and the psychological mark of $250. If the stock price goes down, it is likely to stop ahead of these levels rather than break out them.
Google may rise to the next round number of $2400 on encouraging data. The RSI indicator reversed yesterday from 70.00, thus there’s some room for the price to rise. When the price breaks $2400, the way up to the next psychological mark of $2500 will be open. Support levels are at the recent low of $2250 and the 50-day moving average of $2140.
Don't know how to trade stocks? Here are some simple steps.
- First of all, be sure you’ve downloaded FBS Trader app. FBS allows you to trade stocks only through this software.
- Open an account in FBS Trader.
The US Federal Reserve may refrain from more aggressive interest rate hikes in March due to geopolitical risks after Russia's special operation in Ukraine…
Hello from the far 2022! FBS analysts have used some magic to travel to the future and brought you some hilarious predictions.
The stock market has reversed, and now it’s going lower and lower…
Walmart is one of the biggest retail corporations in the US, with $244 billion in total assets. Does it worth buying amid rising prices and supply concerns that shatter the world economy?
Japan's inflation is set to reach 2% in April's reading, for the first time since 2015. But what about the weaker Yen?!