Microsoft (MSFT, $213.55) shares edge lower, amid Trump's Tiktok sale order

Microsoft Corp.   shares fell Tuesday, after  potential suitors surfaced with respect to the planned sale of TikTok's U.S. operations over the coming weeks.

News broke Friday that U.S. President Donald Trump ordered that Chinese app Tiktok should divest its U.S. operations amid concerns over data privacy linked to its China-based owners, ByteDance, following an investigation by Committee on Foreign Investment in the United States. On Sunday, Microsoft said that it's looking at buying TikTok's U.S. business.

Tiktok has been downloaded over 175 million times in the U.S. alone and has 1 billion global users. Trump said the app will be banned in the U.S. if it's not sold by September 15.

"I did say that if you buy it, whatever the price is that goes to whoever owns it, because I guess it’s China essentially, I said a very substantial portion of that price is going to have to come into the Treasury of the United States because we’re making it possible for this deal to happen," Trump told reporters in Washington 

ByteDance said it is considering establishing a TikTok headquarters in a major market outside the United States to better serve its global users.

MSFT enters an Uptrend because Momentum Indicator exceeded the 0 level on July 31, 2020

This indicator signals that MSFT's price has momentum to move higher, since its current price moved above its price 14 days ago. Traders may consider buying the ticker or exploring call options. In 63 of 90 cases where MSFT's Momentum Indicator exceeded 0, its price rose further within the subsequent month. The odds of a continued Uptrend are 70%.

Current price $213.44 is above $189.80 the highest resistance line found by A.I. Throughout the month of 07/01/20 - 08/03/20, the price experienced a +6% Uptrend. During the week of 07/27/20 - 08/03/20, the stock enjoyed a +6% Uptrend growth.

Technical Analysis (Indicators)

Bullish Trend Analysis

The Stochastic Indicator suggests the ticker price trend may be in a reversal from a Downtrend to an Uptrend. 28 of 42 cases where MSFT's Stochastic Indicator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued Uptrend are 67%.

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where MSFT advanced for three days, in 221 of 355 cases, the price rose further within the following month. The odds of a continued Uptrend are 62%.

The Aroon Indicator entered an Uptrend today. In 269 of 414 similar cases where MSFT Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 65%.

Bearish Trend Analysis

The RSI Indicator appears to be shifting from an Uptrend to a Downtrend. In 20 of 50 cases where MSFT's RSI indicator exited the overbought zone, the price fell further within the following month. The odds of a continued Downtrend are 40%.

The Moving Average Convergence Divergence (MACD) crossed below the signal line. In 15 of 50 cases where MSFT's MACD histogram became negative, the price fell further within the following month. The odds of a continued Downtrend are 30%.

The higher Bollinger Band was broken -- a price fall is expected as the ticker heads toward the middle band, which invites the trader to consider selling or shorting the ticker, or exploring put options. In 22 of 55 cases where MSFT's price broke its higher Bollinger Band, its price dropped further during the following month. The odds of a continued Downtrend are 40%.

Fundamental Analysis (Ratings)

Tickeron has a negative outlook on this ticker and predicts a further decline by more than 4.00% within the next month with a likelihood of 61%. During the last month, the daily ratio of advancing to declining volumes was 1.07 to 1.

The Tickeron Profit vs. Risk Rating rating for this company is 3 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 81, placing this stock better than average.

The Tickeron Valuation Rating of 13 (best 1 - 100 worst) indicates that the company is seriously undervalued 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 (13.86) is normal, around the industry mean (17.95). P/E Ratio (37.60) is within average values for comparable stocks, (179.43). Projected Growth (PEG Ratio) (2.54) is also within normal values, averaging (5.68). Dividend Yield (1.00) settles around the average of (0.34) among similar stocks. P/S Ratio (10.89) is also within normal values, averaging (12.92).

The Tickeron Price Growth Rating for this company is 16 (best 1 - 100 worst), indicating outstanding 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 SMR rating for this company is 16 (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 27 (best 1 - 100 worst), pointing to outstanding 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.

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