Will Microsoft Corp (NASDAQ:MSFT) shadow Mercedes Benz price jump?


USD 247.49  2.46  1.00%   

Mercedes Benz would recover faster from the current slide as its shares price went up 1.68% to Microsoft Corp's 4.9%While many traders are getting carried away by overanalyzing competition within technology space, it is quite reasonable to review both, Microsoft Corp and Mercedes Benz as potential short-horizon investments. We are going to break down some of the competitive aspects of both Microsoft and Mercedes.
Published over a month ago
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By analyzing existing technical and fundamental indicators between Microsoft Corp and Mercedes, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Mercedes with a short position in Microsoft Corp. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Microsoft Corp has an asset utilization ratio of 102.48 percent. This implies that the company is making $1.02 for each dollar of assets. An increasing asset utilization means that Microsoft Corp is more efficient with each dollar of assets it utilizes for everyday operations.

How important is Microsoft Corp's Liquidity

Microsoft Corp financial leverage refers to using borrowed capital as a funding source to finance Microsoft Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Microsoft Corp financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Microsoft Corp's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Microsoft Corp, but it might be worth checking our own buy vs. sell analysis

What is driving Microsoft Corp Investor Appetite?

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now take a look at Microsoft Corp revenue. Based on the latest financial disclosure, Microsoft Corp reported 198.27 B of revenue. This is much higher than that of the Technology sector and significantly higher than that of the Software—Infrastructure industry. The revenue for all United States stocks is significantly lower than that of Microsoft Corp. As for Mercedes Benz we see revenue of 138.18 B, which is much higher than that of the Software—Infrastructure

Microsoft198.27 Billion
Mercedes138.18 Billion
198.3 B
138.2 B

Will Microsoft Corp immediately start a bounce-back?

Newest Information Ratio is up to -0.02. Price may drop again. Microsoft Corp exhibits very low volatility with skewness of 0.36 and kurtosis of 2.35. However, we advise investors to further study Microsoft Corp technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Microsoft Corp's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Microsoft Corp's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Conclusion on Microsoft Corp

Whereas some firms in the software—infrastructure industry are either recovering or due for a correction, Microsoft Corp may not be performing as strong as the other in terms of long-term growth potentials. With a relatively neutral outlook on the newest economy, it is better to hold off any trading of Microsoft as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Microsoft Corp.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Aina Ster do not own shares of Microsoft Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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