Last Friday, tech giant Microsoft entered federal court in San Jose, California to sue a unit of Taiwanese contract manufacturer Foxconn over unpaid royalties on the consumer devices it makes for others.
Microsoft has a patent license with Foxconn that demands the latter make payments for smartphones, tablets and other devices, as well as to provide an annual audit to Microsoft. The software giant says the company has defaulted on both counts in recent years.
In this suit, Microsoft disclosed that Foxconn had last submitted a report in 2014 but that it was an inaccurate one. It produced no further reports and paid no royalties for 2015-2018.
It is surprising why Foxconn stopped keeping its obligations. Taiwan's Foxconn on Tuesday responded to Microsoft’s patent infringement lawsuit by saying that as a contract manufacturer, it has never needed to pay any royalties to the software giant.
Following this suit, it now seems that Foxconn needs to own up to its defaults and pay back the outstanding royalties to Microsoft. However, the software giant still wants to work through the disagreement.
Historically, Microsoft has received significant royalties on Android-based phones and tablets from most key manufacturers.
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where MSFT declined for three days, in of 258 cases, the price declined further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on April 15, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on MSFT as a result. In of 96 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for MSFT turned negative on March 28, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 55 similar instances when the indicator turned negative. In of the 55 cases the stock turned lower in the days that followed. This puts the odds of success at .
MSFT moved below its 50-day moving average on April 15, 2024 date and that indicates a change from an upward trend to a downward trend.
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where MSFT advanced for three days, in of 350 cases, the price rose further within the following month. The odds of a continued upward trend are .
MSFT may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 389 cases where MSFT Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 90, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. MSFT’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (13.245) is normal, around the industry mean (29.910). P/E Ratio (38.386) is within average values for comparable stocks, (155.839). Projected Growth (PEG Ratio) (2.153) is also within normal values, averaging (2.725). Dividend Yield (0.007) settles around the average of (0.081) among similar stocks. P/S Ratio (13.928) is also within normal values, averaging (55.319).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a developer of software and harware products
Industry PackagedSoftware