Microsoft forms alarming pattern in almost 10 years; Is $350 crash next?

Core Viewpoint - Microsoft's stock is experiencing significant downward pressure, with a recent loss of the $400 support level and a year-to-date decline of nearly 5% [1][4]. Technical Analysis - The stock has formed a death cross for the first time in almost a decade, indicating a bearish signal as the short-term moving average crosses below the long-term moving average [2]. - The downward-sloping 200-day moving average suggests a potential sustained erosion of upward momentum, raising concerns about a trend reversal [4]. - There is a possibility that MSFT may test the critical $350 support level if broader market weakness continues [5]. Market Projections - Despite the current losses, some analysts believe this may represent the final stages of a major corrective wave before a potential rally beyond $510 [5]. - Goldman Sachs has set a price target of $500 for MSFT, reaffirming a 'Buy' rating based on strong fundamentals [7]. Company Fundamentals - Microsoft maintains strong long-term growth potential, driven by advancements in artificial intelligence (AI) and cloud computing [9]. - The company has $300 billion in remaining performance obligations (RPO) and has seen a 75% year-over-year growth in commercial bookings, positioning it favorably against competitors like Oracle [8]. - CEO Satya Nadella acknowledges that AI currently lacks real value but sees significant economic potential in the future [9]. Innovations - Microsoft is investing in quantum computing, recently unveiling its Majorana 1 chip, which is claimed to be less error-prone than competitors [10].