Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Microsoft's Office for Apple iPad Announcement: Gauging the Potential Market Reaction


Microsoft is expected to announce big news today.

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

Microsoft (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 (NASDAQ:AAPL) iPad.

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.

Twitter: @MichaelComeau

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
< Previous
  • 1
Next >
Position in AAPL
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Featured Videos