Still the undefeated software giant Microsoft, top 3 company of the world has corrected for 25%, nearly as much as we have seen in March 2020.
Is it time to buy?
Fundamental indicators:
Revenue and Profits - consistent strong growth for the past 10 years
Profit margin - impressive 35% in 2021
P/E - although still above the norms with 27x ratio it can be considered by many very much acceptable for this highly effective company
Liabilities - no problems with debt
Technical Analysis (Elliott Waves):
The rapid drop in March 2020 has completed correction that has been observed for nearly year and a half and formed by a Running Flat
Since then Microsoft has enjoyed an explosive growth with over 150% increase in an impulse movement
And having peaked at $350 there is another correction developing now
Given the rank of this highly sought after stock it is possible to assume that this correction is going to be similar to the previous one and the depth is not going to exceed 0.382 Fibonacci retracement of wave 3, i.e. not lower than $230, and it will also be shaped as a Running Flat
Duration of this running correction is likely to be longer than the previous one lasting at least till end of 2023 followed by another rocket-like movement to the moon
What do you think about the prospects for Microsoft?
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