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(NASDAQ:MSFT) has a press event scheduled for today in San Francisco, and it's widely expected that recently appointed CEO Satya Nadella
will announced Office for the Apple
Back on March 18, when the rumors started flying about his possible news, I discussed how Office on iPad would be a net positive for both Microsoft and Apple.
You can see on this chart just how well Microsoft's stock has reacted to the speculation. It's been holding up much better than the Nasdaq Composite
(INDEXNASDAQ:.IXIC) , which is denoted by the purple line.
So let's think about possible reactions to Microsoft making this announcement.
If Microsoft doesn't unveil Office for iPad, or it's merely some crippled, limited version, the stock will likely give back some of its recent gains, unless something really, really interesting that's out of left field is shown.
But if we do get a solid, functional version of Office for iPad, I suspect there's a good chance we see a pop on the actual announcement which will be sold off by day's end, simply because there's been over a week of anticipation built in by now.
Additionally, we've seen other instances of Microsoft popping on important strategic news, like when Steve Ballmer retired, only to see profit-taking swiftly come in.
The stock's been acting quite well, but be wary.
Position in AAPL
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