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Here is Why Tony Zhang Thinks Microsoft’s Inventory Is Primed For A Restoration

Shares of Microsoft Corporation (NASDAQ:MSFT) declined by 1.85% to close trading Friday at $296.03 amid a broader tech selloff.

On CNBC’s “Options Action,” Tony Zhang said that Microsoft has a “fairly bulletproof business and there is an opportunity going into earnings.” The company’s earnings call is scheduled for Tuesday.

Microsoft’s chart shows the stock broke out a year ago from the $230 level and has been on a “pretty strong uptrend,” Zhang noted. “Since the peak, it has pulled back about 15% back to that channel,” he added.

Also See: Microsoft’s 10 Biggest Acquisitions Of All Time: Activision, LinkedIn And More

Microsoft’s stock has underperformed its sector since November, Zhang said. He expects a rebound in the stock, with the earnings announcement being a catalyst.

The options market is implying a move of about 5.2%, versus the 2.6% average over the past eight quarters, Zhang added.



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