The tech tape has been anything but pretty lately. Oracle earnings disappointed, Cisco got a downgrade and AMD missed its numbers and announced it would cut its workforce by 10%. What’s a tech trader to do?
Stay with what’s working. Fast Money’s Guy Adami said on Tuesday’s Closing Bell that he would still own Microsoft whether the Yahoo deal closes or not. Even as the Redmond, Washington-based tech titan killed earnings the past two quarters it has been “unjustifiably” beaten down by the market on skepticism over the hostile bid for Yahoo.
Adami thinks Microsoft stock can be owned into its next earnings release and said he predicts a share price of $34 or $35 by this time next year. Granted, it’s not known to make big swings overnight, but with the broader tech sector behaving so anemically, MSFT might just be the safest bet of the bunch.
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