It has been a rough week for the stock market, as all significant players lost value. That isn’t too surprising, given the current economic circumstances. However, bullish momentum has returned for all significant assets, indicating a reversal may be nigh.
The Bulls Favor The Stock Market
All major stocks lost value in the past week. With ongoing financial squeezes, mergers and acquisitions, VC funding drying up, and layoffs soaring, that is par for the course. The entire technology industry – and, by extension, every segment aligned with it – is going through a severe crunch. That momentum will likely last for a while, and more industry layoffs are expected.
Investors responded in kind to these ongoing changes. Companies like Amazon, Apple, Tesla, and Microsoft saw their stock prices decrease accordingly. The seven-day losses are steep for Tesla (-13.7%) and Amazon (-7.2%). However, Apple (-1.6%) and Microsoft (-0.8%) did alright. Even so, the unease across the market leaves many to wonder where things will head over the coming weeks and months.
One obvious thing is the intensifying bullish moment. More specifically, people have an optimistic stock market outlook once again. That is surprising, as there is no immediate reason to expect profound changes. Venture capital funding remains relatively low, and a fair few companies struggle to stay afloat. In addition, consumers continue to sit on their money, affecting the business of the Apples, Teslas, and Amazons of this world.
Is Microsoft (MSFT) About To Pop Off?
As the stock that lost the most negligible value, $MSFT is of keen interest to many people. Microsoft is more than the company creating the Windows operating system. It also provides various business tools, cloud services, the Xbox product line, etc. Despite economic hardship, Microsoft is a company that suffers a few setbacks, even if things could be much better.
More importantly, the bullish sentiment for MSFT has risen by over 63% this week. That is remarkable, although the lower-than-expected stock market losses favor a positive outlook. There is also more social activity surrounding this stock, even if fewer people engage with these mentions. As a result, a push to $250 wouldn’t be out of the question for MSFT this week, although caution remains advised.
Can Amazon (AMZN) Rebound?
Many people keep a close eye on Amazon’s stock price. The AMZN value nosedived a bit last week as the company is expected to lay off at least 10,000 employees. That shocked many investors, even though Amazon has never been a highly profitable company. Any setback will lead to reducing the workforce, as it is the cheapest and most efficient solution. The 7.2% stock market hit is a logical outcome, although things can always turn around.
That said, AMZN struggles in social momentum, despite a 1.3% increase in bullish momentum. Momentum has soured surrounding the company, although the holiday season is around the corner. As consumers spend more money on gifts and other items, Amazon may get a nudge for its Q4 earnings report. That may, in turn, bring the AMZN stock price closer to $100 again in the coming weeks.