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Microsoft (MSFT) stock rose by over 6% yesterday after the company announced it had acquired Affirmed Networks to deliver new opportunities for a global 5G ecosystem. The FAANG stocks were on the winning side with a surge of 5% on average.
Wall Street yesterday had many traders pocket some profits and also others cut some losses. This is after Microsoft Corporation (NASDAQ: MSFT) stock rose by over 6% in a day. The positive jump is being attributed to several fundamental factors that have happened during the week, especially as it nears the end.
This has led to the shares pointing upwards, and possibly the weekly bar will close with a strong green candle. After retesting the support level that acted as support for the lows of the third quarter of 2019 at $133, the shares are now trading at $156. Yesterday, MSFT reached the $156.11 mark but today in the premarket the stock is 3.08% down.
Although a huge drop earlier in February, which has wiped out all the gains from 2019 to late January, Microsoft stock market is responding positively to the outside and internal forces. After the strong rebound ending the week, it might only continue if the optimistic atmosphere at the time prevails.
In addition to the stocks doing well as the week comes to an end are the FAANG companies. The FAANG, which is an acronym that refers to the stocks of the five prominent American tech companies, on average saw a jump of approximately 5%. This is after Facebook Inc (NASDAQ: FB) rose by 4.56%, Amazon.com Inc (NASDAQ: AMZN) by 3.69%, Apple Inc (NASDAQ: AAPL) by 5.26%, Netflix Inc (NFLX) by 6.02%, and Alphabet Inc (NASDAQ: GOOGL) by 5.38%.
There are reasons majorly made Microsoft stock led the pack on the rise.
Reasons for Microsoft (MSFT) Stock Rise
One, Microsoft Inc yesterday announced that it has agreed to acquire Affirmed Networks. Affirmed Network Inc. is an American registered company that provides telecommunication equipment and solutions. The company which has only been in existence for the past decade, it has seen its services grow to deliver mobile content cloud, software upgrades, radio optimization, virtualization of mobile broadband, wireless networking traffic management, and voice optimization.
According to Microsoft, the next generation of wireless networks will enable a host of new opportunities for both the society and the business community. They include applications in autonomous vehicles, in future smart cities, also in virtual reality, and in smart industries. With the world tech headed in that direction, it is clear why investors got interested in putting their money back to Microsoft Company.
On the other hand, the rise can also be attributed to the ongoing coronavirus stimulus package, which is meant to cushion the U.S. market from further tumbling. Up until the promise is delivered on the bill in the next few weeks, the stock may be on the rising end. However, if the package stimulation does not catalyze the rise to the all-time high, and coronavirus continues threatening society, the free fall might be inevitable.