Microsoft(US:MSFT) Jin Rong Jie·2025-05-06 02:15Group 1 - The article discusses a potential pullback in several tech stocks after a significant rise, influenced by recent market conditions including tariff announcements and strong earnings reports [1] - Major stock indices have shown consecutive weekly gains, driven by positive employment data and earnings season [1] - Microsoft and Meta Platforms have boosted investor confidence in AI-related investments, despite facing higher costs due to tariffs [1] Group 2 - Microsoft (MSFT) is identified as one of the most overvalued stocks with an RSI of 72.78, indicating potential downward pressure [4] - Microsoft’s stock surged approximately 11% this week, driven by strong earnings and positive guidance, particularly in its Azure division [4] - Other tech companies like Palantir (PLTR), VeriSign (VRSN), and Netflix (NFLX) are also considered overvalued based on their RSI metrics [4] Group 3 - Palantir has seen a year-to-date increase of over 64%, attributed to contracts with key U.S. government agencies, but analysts suggest a potential 27% decline based on target prices [4] - Netflix and VeriSign have outperformed the market with year-to-date increases of 29.8% and 37.3%, respectively, with Netflix achieving an 11-day consecutive rise [4] Group 4 - Undervalued stocks include UnitedHealth Group (UNH) and Church & Dwight (CHD), with RSIs of 25.11 and 27.78, respectively [5] - UnitedHealth Group's stock has dropped nearly 21% this year due to higher-than-expected medical costs following a profit forecast downgrade [5]