A big announcement just came out about one of my all-time favorite stocks, microsoft. It was just reported that microsoft's bid to buy the u.s portion of tick-tock was rejected. Now, all of you, tick-tock fans, shouldn't, really worry, because there are still other interested parties, but this does bring up the question. What does this news mean for microsoft and its stock? What is going on moon gang? I hope you're having a great day.

My name is matt and in this video i will be discussing what the tick tock rejection means for microsoft as a company, and i will also be breaking down its stock on both the fundamental and technical level. So you have a better idea of what to look for in the future before we dive into it. If you enjoy this type of stock market related content, it would be truly appreciated if you could drop a like, because it really helps with getting this video in front of other people. And if you want to join the moon gang subscribe to the channel and don't forget to turn on your notifications, alrighty, then let's get started so to give you the sparknotes edition of.

What's going on between microsoft and tiktok, we have to rewind to the start of august. On august 2nd, it was announced that microsoft was in talks with tiktok to buy the us portion of their business and they aim to finish the deal by september 15th. Then in late august it was announced that walmart would be teaming up with microsoft on the tick tock bid. The deal was expected to be in the 20 to 30 billion dollar range, and then that brings us to now.

On september 14th. It was announced that the microsoft walmart bid was rejected and oracle confirmed that they came to a deal with tick, tock owner bike, dance to become their trusted technology provider, but the deal still needs u.s government approval oracle. On monday confirmed, it has struck a deal with bite dance, the chinese owner of the popular video sharing app tiktok weeks after the trump administration ordered a tick-tock divester in the u.s. If you haven't been watching the news, the reasoning for this was because of security concerns.

Tick tock was quoted, saying we can confirm that we've submitted a proposal to the treasury department, which we believe will resolve the administration's security concerns. This proposal would enable us to continue supporting our community of 100 million people in the u.s who love tick, tock for connection and entertainment, as well as the hundreds of thousands of small business owners and creators who rely upon tick, tock to grow their livelihoods and build Meaningful careers, i don't have much of an opinion on the political concerns surrounding tick tock because i simply don't know enough about the subject, but when it was announced that microsoft was interested in buying tiktok. I was intrigued because it would mark microsoft's break into social media. The more and more i looked into the potential acquisition, the less i started to care tick tock would represent a small portion of microsoft's overall business and the headaches associated with it would draw attention away from their flagship products.

I do believe being involved with the social media platform is a smart play, but i don't think it's so smart that it should distract from microsoft, office, the surface products, the xbox gaming console or windows, 10. tick, tock or no tick. Tock, microsoft has a lot going for it, which is why i personally think it should be a portion of everyone's investment portfolio. I don't want to make this an extremely long, video by diving into the detail of all of microsoft's businesses, so i'll.

Stick to my favorite microsoft, azure azure is the name for microsoft's cloud operations and helps facilitate things such as cloud computing and storage. As you can see from this chart, microsoft is in the light blue, it's the second largest player in the cloud sector behind amazon, but at the time i'm making this video microsoft is growing more rapidly. This means that microsoft is extremely well positioned. It's growing at a faster pace relative to its competitors and it's in a sector.

That's booming. In q2, of 2019 cloud computing amounted to 26 billion dollars and in q2 of 2020 it had grown to 34 billion dollars and to make things better. I don't think that this growth will slow down anytime soon, as technology continues to advance cloud operations will become more and more important and the industry will grow. Microsoft, has the resources and is prepared to ride the wave.

The company is a 1.5 trillion dollar goliath and is still growing from 2016. Until now, microsoft's total revenues have jumped by almost 50 percent by going from 91 billion to 143 billion, and their gross profits have almost doubled by going from 58 billion to 96 billion. Honestly, i'm not even sure if this is possible to conceptualize, but microsoft currently has a net income of 44 billion dollars with numbers of this magnitude. I hope you can understand why the tick tock deal falling through doesn't really change.

My investment thesis. It also hasn't changed wall street's opinion on microsoft, with one being very bearish and five being very bullish. The average analyst rating is 4.54, which is very bullish and out of 35 analyst ratings 31 are either very bullish or bullish at the time that i'm making this video microsoft is trading just above 205 dollars, and these analysts have a price target of 232, but i Did find other interesting price forecasts? According to these 27 analysts over the next 12 months, their high target is 260 dollars, which would be a 27 percent gain. Their median target is 233, which would be a 13 gain and even their low target is 205, which would be a one percent gain.

Now that we've covered the recent news related to microsoft, the company's fundamentals and wall street's opinion on the stock. Let's do a technical breakdown of the chart, microsoft, trades under the ticker msft and since the start of 2020 it is up 30 at one point in march it was down 16, but since then it's managed to rally a noteworthy 55, as i've discussed in some of My previous videos, no matter how bullish you are, you should be buying your shares as close to support as possible, because it will help optimize your risk to reward as things currently stand. The first support is pretty close by at the psychological level of 200, which was also a battleground in late july. If the bears pushed the stock below this, i would then watch the low 190s, which proved to be support at the end of june and as a reach target.

You could try to pick up some shares at 175, but i don't think the stock will be trading at this level anytime soon. On the other hand, we have resistance areas where it might not be the worst idea to lock in some of your profits. As things currently stand, i would recommend watching 217 and also the all-time high at 2. 33.

With all this being said, regardless of what you decide to do, make sure you're training with a plan and please don't let your risk go unchecked. Overall, i really really like microsoft as a long-term investment. I personally own many shares of microsoft and i would be more than happy to hold those shares for years to come, but with that being said, i'm not a financial advisor. So please do your own research.

I would love to know your thoughts on microsoft stock. In a comment below also feel free to post any suggestions for what i should cover next, thanks for watching to the end of the video, it truly means a lot to me. If you want to support my efforts with this channel, it would be greatly appreciated if you could hit the like button and join the moon game by subscribing to the channel. It really helps me out thanks for watching and until next time best of luck in the markets.