Microsoft Stock, Xbox On The Rebound
Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
Microsoft Corporation (NASDAQ: MSFT) shares are trading higher by $0.49 at $43.59 in Friday's session. The stock has been on a slow and steady rebound since the Street was not impressed with the tech giant's Q2 earnings report.
The company matched EPS estimates of $0.71 on slightly better-than-expected revenue of $26.47 billion. After putting a double bottom in place on January 30 ($40.35) and February 2 ($40.23), it is now trading just above the session high ($43.20) on the day of the earnings washout.
The rally in Friday's session began to accelerate around 10:30 AM, when Benzinga reported unconfirmed chatter that the company may spin off the Xbox.
The timing of the deal nearly matched a report from NDP Group, which said the Xbox One sold more games per console than any other competitor in January.
At this time, Microsoft is trading in an area of very little resistance; there are no reference points for traders to rely on between the its pre-earnings low (S46.24) and its high from the day of its earnings debacle ($43.20).
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