Musk Sues for $134B; Microsoft Shares Down 5.6% Entering Oversold
Elon Musk filed a suit seeking up to $134 billion from Microsoft and OpenAI, claiming wrongful AI gains based on his early investment support. Microsoft shares are down 5.6% in four weeks and have entered technical oversold territory, even as analysts raised earnings estimates, indicating a possible trend reversal.
1. Microsoft Primed for a Technical Rebound After Recent Sell-Off
Shares of Microsoft have fallen roughly 5.6% over the past four weeks, pushing key momentum indicators into oversold territory for the first time since mid-2024. This pullback follows a period of broad tech weakness but has coincided with a notable shift in Wall Street sentiment: more than 80% of analysts covering the name have raised full-year earnings estimates over the past month, citing stronger than expected enterprise cloud demand and robust license renewals. With relative strength index (RSI) readings dipping below 30 and average trading volume climbing 15% above its 30-day norm on down-volume days, technical and fundamental signals suggest the recent selling pressure may have been exhausted, setting the stage for a potential trend reversal in the coming weeks.