MSFT faces technical resistance at $509 suggesting a pause, despite positive moving averages and sector momentum.

This may not mean much to Meta and Microsoft given their strong technology there, and even Amazon, but smaller competitors may be able to take advantage of it.

Now we move on to Microsoft. The stock started at $510. The stock fell 2% this week to $499. This comes as Stifel raised its target price for the stock based on improvements to Copilot and artificial intelligence.

This is what I generally see happening with Microsoft.

I thought that was a smart statement, we call it artificial intelligence, but it takes a tremendous amount of coordination and organization to make these systems work. I think the average person on the street typing things in a chat box looks at AI and doesn't find it impressive.

It's only when you really dig deep and build a whole system that you get a deep understanding of what this technology is doing, and perhaps a greater appreciation for companies like Microsoft that will have to organize this for organizations that have cybersecurity, compliance, privacy, and other considerations to keep in mind when implementing AI in their business.

And I think a company like Microsoft is clearly in a good position in that regard.

And now, we have a CEO selling shares near peak levels. Satya Nadella is selling $43 million worth of Microsoft stock. These transactions are done within pre-defined trading plans, but it's amazing.

It's truly remarkable how these people sell their shares after such a significant rise." Near the top.

Now, Microsoft is putting limits on users' cloud gaming hours on Xbox. Now, you'll only get 15 hours of gameplay per month. What? When I was getting ready for this, I thought it was 15 hours per week, and I was thinking, "Damn, if you're playing 15 hours of games every week, you're being too serious." 15 hours a month?

That equates to about 30 minutes a day. I mean, that's definitely more than I play video games, although I like to play video games for 30 minutes a day. I mean, I can imagine people easily exceeding that limit, although we'll see how the gaming community reacts.

Microsoft is now restructuring its business segments ahead of its Q1 results . Let me tell you something, a CEO selling shares and then changing how they report is often a recipe for disaster.

Frankly, when companies change how they report, like Netflix did recently last year, stocks plummet . We've seen this repeatedly . When you change how you report, it often means you're trying to hide something .

I'm not saying that's the case with Microsoft, but it's not encouraging. They used to report in three different segments: Productivity and Business Operations, Intelligent Cloud, and Personal Computing.

Now they'll only report under the Agents and Infrastructure labels, which I assume means Azure and Copilot. Then they have the Devices and Consumer segment, which I assume is for the Windows business."

Microsoft always releases a table every time it announces earnings that details what's happening on LinkedIn, Xbox, and their advertising activity. If they continue with this, then the integration is fine , but if they remove the table, you won't know which part is driving the results unless they explicitly mention it on the call.

They're pitching these AI models and saying, "Hello, Palo Alto Networks, and hello, Microsoft Azure and AWS." "Well, you should use this other model to protect yourselves from the one we're about to release."

At least in the short term , this probably seems like a good idea . Companies are obviously trying to cope with this situation.

For Microsoft, it's a completely different situation. Technically, it has reached resistance at 509. It's a very natural place to take a breather. All the moving averages are positive, and there seems to be momentum in the software sector.