Microsoft Stock Forecast - Simple Exponential Smoothing

MSF Stock   383.80  3.95  1.04%   
The Simple Exponential Smoothing forecasted value of Microsoft on the next trading day is expected to be 383.80 with a mean absolute deviation of 4.29 and the sum of the absolute errors of 257.46. Microsoft Stock Forecast is based on your current time horizon.
At this time, the value of RSI of Microsoft's share price is approaching 34. This indicates that the stock is in nutural position, most likellhy at or near its support level. The main point of RSI analysis is to track how fast people are buying or selling Microsoft, making its price go up or down.

Momentum 34

 Sell Stretched

 
Oversold
 
Overbought
The successful prediction of Microsoft's future price could yield a significant profit. We analyze noise-free headlines and recent hype associated with Microsoft, which may create opportunities for some arbitrage if properly timed.
Using Microsoft hype-based prediction, you can estimate the value of Microsoft from the perspective of Microsoft response to recently generated media hype and the effects of current headlines on its competitors.
The Simple Exponential Smoothing forecasted value of Microsoft on the next trading day is expected to be 383.80 with a mean absolute deviation of 4.29 and the sum of the absolute errors of 257.46.

Microsoft after-hype prediction price

    
  EUR 383.8  
There is no one specific way to measure market sentiment using hype analysis or a similar predictive technique. This prediction method should be used in combination with more fundamental and traditional techniques such as stock price forecasting, technical analysis, analysts consensus, earnings estimates, and various momentum models.
  
Check out Historical Fundamental Analysis of Microsoft to cross-verify your projections.
For more information on how to buy Microsoft Stock please use our How to Invest in Microsoft guide.

Microsoft Additional Predictive Modules

Most predictive techniques to examine Microsoft price help traders to determine how to time the market. We provide a combination of tools to recognize potential entry and exit points for Microsoft using various technical indicators. When you analyze Microsoft charts, please remember that the event formation may indicate an entry point for a short seller, and look at other indicators across different periods to confirm that a breakdown or reversion is likely to occur.
Microsoft simple exponential smoothing forecast is a very popular model used to produce a smoothed price series. Whereas in simple Moving Average models the past observations for Microsoft are weighted equally, Exponential Smoothing assigns exponentially decreasing weights as Microsoft prices get older.

Microsoft Simple Exponential Smoothing Price Forecast For the 23rd of January

Given 90 days horizon, the Simple Exponential Smoothing forecasted value of Microsoft on the next trading day is expected to be 383.80 with a mean absolute deviation of 4.29, mean absolute percentage error of 30.28, and the sum of the absolute errors of 257.46.
Please note that although there have been many attempts to predict Microsoft Stock prices using its time series forecasting, we generally do not recommend using it to place bets in the real market. The most commonly used models for forecasting predictions are the autoregressive models, which specify that Microsoft's next future price depends linearly on its previous prices and some stochastic term (i.e., imperfectly predictable multiplier).

Microsoft Stock Forecast Pattern

Backtest MicrosoftMicrosoft Price PredictionBuy or Sell Advice 

Microsoft Forecasted Value

In the context of forecasting Microsoft's Stock value on the next trading day, we examine the predictive performance of the model to find good statistically significant boundaries of downside and upside scenarios. Microsoft's downside and upside margins for the forecasting period are 382.51 and 385.09, respectively. We have considered Microsoft's daily market price to evaluate the above model's predictive performance. Remember, however, there is no scientific proof or empirical evidence that traditional linear or nonlinear forecasting models outperform artificial intelligence and frequency domain models to provide accurate forecasts consistently.
Market Value
383.80
382.51
Downside
383.80
Expected Value
385.09
Upside

Model Predictive Factors

The below table displays some essential indicators generated by the model showing the Simple Exponential Smoothing forecasting method's relative quality and the estimations of the prediction error of Microsoft stock data series using in forecasting. Note that when a statistical model is used to represent Microsoft stock, the representation will rarely be exact; so some information will be lost using the model to explain the process. AIC estimates the relative amount of information lost by a given model: the less information a model loses, the higher its quality.
AICAkaike Information Criteria119.683
BiasArithmetic mean of the errors 1.105
MADMean absolute deviation4.291
MAPEMean absolute percentage error0.0102
SAESum of the absolute errors257.46
This simple exponential smoothing model begins by setting Microsoft forecast for the second period equal to the observation of the first period. In other words, recent Microsoft observations are given relatively more weight in forecasting than the older observations.

Predictive Modules for Microsoft

There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as Microsoft. Regardless of method or technology, however, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Microsoft's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Hype
Prediction
LowEstimatedHigh
382.51383.80385.09
Details
Intrinsic
Valuation
LowRealHigh
345.42403.12404.41
Details
Bollinger
Band Projection (param)
LowMiddleHigh
382.93403.58424.24
Details

Microsoft After-Hype Price Prediction Density Analysis

As far as predicting the price of Microsoft at your current risk attitude, this probability distribution graph shows the chance that the prediction will fall between or within a specific range. We use this chart to confirm that your returns on investing in Microsoft or, for that matter, your successful expectations of its future price, cannot be replicated consistently. Please note, a large amount of money has been lost over the years by many investors who confused the symmetrical distributions of Stock prices, such as prices of Microsoft, with the unreliable approximations that try to describe financial returns.
   Next price density   
       Expected price to next headline  

Microsoft Estimiated After-Hype Price Volatility

In the context of predicting Microsoft's stock value on the day after the next significant headline, we show statistically significant boundaries of downside and upside scenarios based on Microsoft's historical news coverage. Microsoft's after-hype downside and upside margins for the prediction period are 382.51 and 385.09, respectively. We have considered Microsoft's daily market price in relation to the headlines to evaluate this method's predictive performance. Remember, however, there is no scientific proof or empirical evidence that news-based prediction models outperform traditional linear, nonlinear models or artificial intelligence models to provide accurate predictions consistently.
Current Value
383.80
382.51
Downside
383.80
After-hype Price
385.09
Upside
Microsoft is very steady at this time. Analysis and calculation of next after-hype price of Microsoft is based on 3 months time horizon.

Microsoft Stock Price Prediction Analysis

Have you ever been surprised when a price of a Company such as Microsoft is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Microsoft backward and forwards among themselves. Have you ever observed a lot of a particular company's price movement is driven by press releases or news about the company that has nothing to do with actual earnings? Usually, hype to individual companies acts as price momentum. If not enough favorable publicity is forthcoming, the Stock price eventually runs out of speed. So, the rule of thumb here is that as long as this news hype has nothing to do with immediate earnings, you should pay more attention to it. If you see this tendency with Microsoft, there might be something going there, and it might present an excellent short sale opportunity.
Expected ReturnPeriod VolatilityHype ElasticityRelated ElasticityNews DensityRelated DensityExpected Hype
  0.26 
1.29
 0.00  
 0.00  
0 Events / Month
0 Events / Month
Uncertain
Latest traded priceExpected after-news pricePotential return on next major newsAverage after-hype volatility
383.80
383.80
0.00 
0.00  
Notes

Microsoft Hype Timeline

Microsoft is now traded for 383.80on Stuttgart Exchange of Germany. The entity stock is not elastic to its hype. The average elasticity to hype of competition is 0.0. Microsoft is anticipated not to react to the next headline, with the price staying at about the same level, and average media hype impact volatility is insignificant. The immediate return on the next news is anticipated to be very small, whereas the daily expected return is now at -0.26%. %. The volatility of related hype on Microsoft is about 0.0%, with the expected price after the next announcement by competition of 383.80. The company has Price/Earnings To Growth (PEG) ratio of 2.24. Microsoft had not issued any dividends in recent years. Assuming the 90 days trading horizon the next anticipated press release will be uncertain.
Check out Historical Fundamental Analysis of Microsoft to cross-verify your projections.
For more information on how to buy Microsoft Stock please use our How to Invest in Microsoft guide.

Microsoft Related Hype Analysis

Having access to credible news sources related to Microsoft's direct competition is more important than ever and may enhance your ability to predict Microsoft's future price movements. Getting to know how Microsoft's peers react to changing market sentiment, related social signals, and mainstream news is a great way to find investing opportunities and time the market. The summary table below summarizes the essential lagging indicators that can help you analyze how Microsoft may potentially react to the hype associated with one of its peers.

Other Forecasting Options for Microsoft

For every potential investor in Microsoft, whether a beginner or expert, Microsoft's price movement is the inherent factor that sparks whether it is viable to invest in it or hold it better. Microsoft Stock price charts are filled with many 'noises.' These noises can hugely alter the decision one can make regarding investing in Microsoft. Basic forecasting techniques help filter out the noise by identifying Microsoft's price trends.

Microsoft Related Equities

One of the popular trading techniques among algorithmic traders is to use market-neutral strategies where every trade hedges away some risk. Because there are two separate transactions required, even if one position performs unexpectedly, the other equity can make up some of the losses. Below are some of the equities that can be combined with Microsoft stock to make a market-neutral strategy. Peer analysis of Microsoft could also be used in its relative valuation, which is a method of valuing Microsoft by comparing valuation metrics with similar companies.
 Risk & Return  Correlation

Microsoft Market Strength Events

Market strength indicators help investors to evaluate how Microsoft stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Microsoft shares will generate the highest return on investment. By undertsting and applying Microsoft stock market strength indicators, traders can identify Microsoft entry and exit signals to maximize returns.

Microsoft Risk Indicators

The analysis of Microsoft's basic risk indicators is one of the essential steps in accurately forecasting its future price. The process involves identifying the amount of risk involved in Microsoft's investment and either accepting that risk or mitigating it. Along with some essential techniques for forecasting microsoft stock prices, we also provide a set of basic risk indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential investments, we recommend comparing similar equities with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Story Coverage note for Microsoft

The number of cover stories for Microsoft depends on current market conditions and Microsoft's risk-adjusted performance over time. The coverage that generates the most noise at a given time depends on the prevailing investment theme that Microsoft is classified under. However, while its typical story may have numerous social followers, the rapid visibility can also attract short-sellers, who usually are skeptical about Microsoft's long-term prospects. So, having above-average coverage will typically attract above-average short interest, leading to significant price volatility.

Other Macroaxis Stories

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Additional Tools for Microsoft Stock Analysis

When running Microsoft's price analysis, check to measure Microsoft's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Microsoft is operating at the current time. Most of Microsoft's value examination focuses on studying past and present price action to predict the probability of Microsoft's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Microsoft's price. Additionally, you may evaluate how the addition of Microsoft to your portfolios can decrease your overall portfolio volatility.