Categories: StocksTechnology

New Microsoft deal and Tesla’s battery day kicks off this week


With Microsoft’s recent acquisition of Bethesda and Tesla’s upcoming battery day starting on Tuesday, Wall Street is on the move.

It looks like the U.S. stock markets are starting with another sell-off since last week. Despite the Fed expecting growth in the third quarter, it looks like the U.S. is getting more concerned with the U.K. imposing another lockdown due to the coronavirus.

However, with the recent acquisition of Bethesda, investors are now observing if Microsoft can either pull off a buy up in its stock price or a potential sell down because the news has already been priced in.

As for Tesla, analysts are speculating on the possible topics that Elon Musk could talk about during the shareholder’s meeting.

Microsoft stock price tanks to start the trading week

Due to the negative sentiment that the markets are currently showing, Microsoft’s stock price wasn’t able to sustain its levels at its US$200 [AU$277.67] psychological support level as of this writing.

Based on the stock chart, there might be a chance that it will revisit previous resistance levels at around US$180-190 which could be an attractive support area for traders who want to attempt a reversal. Worst case scenario, Microsoft stock might go back to March 2020 lows.

Another scenario is that it will try to break its resistance at US$200 and create a possible rally to revisit US$230, depending if market sentiment improves and the positive news could drive stock prices to higher levels.

Microsoft plans to acquire ZeniMax Media, the parent company of Bethesda Softworks in a US$7.5 billion deal. The company responsible for games such as The Elder Scrolls, Fallout, and others could boost Xbox sales in the future.

Tesla may be cutting costs or introduce more innovations

With Nasdaq taking a beating to start the week, Tesla’s stock price failed to sustain above US$450 due to the entire market’s sentiment. Investors may see it drop until US$400 per share or lower if market sentiment does not improve.

While Tesla’s battery day coming this week, Sam Jaffe managing director of Cairn ERA tells Bloomberg Green:

“A lot of the stuff that Tesla has been working on is about making the battery manufacturing cheaper, not a new recipe for a battery or a completely new revolutionary structure.”

Another possible speculation as per Bloomberg is Tesla’s acquisition of Maxwell Technologies to use its dry-electrode technology to incorporate in Tesla’s new batteries. Panasonic may work together with Tesla as well to supply the batteries.

Last May, news also circulated that Tesla could introduce a longer-lasting battery for its electric vehicles in China.

Investors will watch this week if the Microsoft deal and Tesla’s stockholder’s meeting could propel its prices to new highs or will the negative sentiment of Wall Street continue to pull these companies down.

As of this writing, the Dow Jones has plunged over 900 points.

Images courtesy of Kārlis Dambrāns/Flickr, TradingView [1], [2]

Alec Padua

Alec a former mobile app developer turned independent singer-songwriter and busker based in the Philippines, who goes by the stage name "Alex Corner". He has released songs on Spotify and other music digital platforms. A self-taught trader and financial market enthusiast, he also started his own YouTube channel and blog called "The Trading Comedy" where he documents his trading journey in the Philippine Stock Market and beyond. He is also a casual gamer and streamer who enjoys FPS, RPG, and strategy games as well as conducting live charting sessions in the financial markets.

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