Microsoft Is Taking Off Like It Did In The Early 90s

Microsoft (MSFT) recently passed $400B in market cap.  Just by looking at the above chart, it appears to be in a long term uptrend similar to that of the early 1990s.

NASDAQ 100 Big Cap Tech To Outperform

Mega cap tech stocks have lagged the broad NASDAQ and the S&P 500 for many months.  Recent market action suggests that this could be changing.  Apple makes up 12% of the NASDAQ 100 Index alone.  A new uptrend for the world's largest technology company by market cap would pull the NASDAQ 100 Index into the lead. It's also worth noting that other tech giants like MSFT, CSCO, INTC, AMZN and GOOG also have bullish charts.  Follow the QQQ.

Microsoft Is The Most Underrated Tech Company

While analysts like to continually make reference to Apple's large $30B cash reserve, they seem to overlook the fact that Microsoft has more than double that.  With $76B in cash and growing, Microsoft has more in cash than the total market cap of most companies in the NASDAQ 100 Index.  It has also increased its revenue and profit year-over-year with little upside response in its stock price.  I think Microsoft will surprise the market with a significant upside breakout sooner than later.  Like many first dot.com generation tech companies, its stock price has gone nowhere for >10 years.  It's a bargain at this price.

Microsoft Is A Screaming Buy

The market has unfairly punished Microsoft.  The options market is currently undervaluing it to a ridiculous degree.  April 2014 calls offer tremendous value.  I'll be buying them.  It is sitting on 10+ year support.

Microsoft Smoked! Time to buy?

10-year chart

Long term chart

Microsoft has a very nice long term chart and is nearing the completion of a long period of price consolidation.  I think it represents very good value at these levels.  I think this selloff will be short lived.

Shawn