Mega-Cap Tech Earnings
It’s been a busy week of earnings reports. So far, we have seen big moves post-earnings in Microsoft (MSFT) and Meta (META), with Amazon (AMZN) up today after the bell.
Check out my thread for more analysis on the initial post-earnings MSFT move below:
#Microsoft gapped up by $21 at market open, post-earnings last night.
The market marker expected move was ~$9.77, so this move is twice what was priced in.
Typically, when this happens, the stock keeps trading higher.
Check out the average stats on $MSFT below:
A thread… pic.twitter.com/fda3aBcACQ
— Danielle Shay (@traderDanielle) April 26, 2023
While the initial move was impressive, the continuation move is even more critical. This is because it’s shifting the pattern on the longer-term timeframes.
Microsoft – Weekly Time Frame
This season, we have seen some very positive results, with Microsoft leading the way, potentially to a new, all-time high.
Going into earnings, Microsoft was hitting a critical resistance zone. That zone was the August ’22 high, the level MSFT hit after rallying after the Q2 2022 earnings report. This was the highest price that MSFT had seen in over nine months.
Can you imagine if Microsoft charges to a new, all-time high? What will it mean for the overall stock market?
The end of the bear market.
What is even better about this earnings report is that even though Microsoft demonstrated slowing growth momentum, the market was expecting this and was pleasantly surprised by the results. The resulting buying pressure is sending tech stocks higher. Now, the Nasdaq must break the August highs for continued momentum in the overall index.
My Earnings Watchlist – 5/1-5/5
Next week, Apple is on deck, along with a slew of other companies that could positively impact the Nasdaq, such as Qualcomm.
Which stocks are you watching this evening? As for me, I’m focusing on Amazon. Which, I think is making an excellent trend shift right here and now. I want to see it break above the January highs. It’s at that point, where it could really be off to the races.