The last week has not been very good for Microsoft Corporation (NASDAQ:MSFT) on the markets. There has been a lot of bearish talk about the stock on the market. Though the stock went to a 15 year high, there were a lot of bearish options traded on the stock.
The stock underperformed on Friday and the options doubled the daily average volume. FMHR trader Dan Nathan was discussing about these options trading on CNBC and he said that a trader bought over 12,000 August 48 calls while the stock is currently trading around $44.5 which continued the whole of Friday ended up closing about 14 cents. He also said that it could just be one a single holder looking to yield some benefit by telling that the stock is not going a lot higher.
Nathan also spoke about the 15 year high that Microsoft Corporation (NASDAQ:MSFT) achieved and he compared the stock’s performance with Intel Corporation (NASDAQ:INTC). He said the semi-conductor looks more stable and has been giving better dividend yields so he would prefer Intel Corporation (NASDAQ:INTC) over Microsoft Corporation (NASDAQ:MSFT). The reason according to him is because it’s balance sheet, dividend yields and valuation looks better than the Software giant.
“Look at Intel, it’s had this really amazing long base here” He spoke how stable the stock has been with good dividends and very good balance sheets.
While Nathan was bearish about the stock, few analysts said that the stock looks good and they would invest in it and the others agreed with him saying that the stock doesn’t look good especially after the layoffs at Nokia handset division.
Valueact Capital is a major investor in the company with over 71.2 million shares as of March 31st 2014. Other key investors in Microsoft Corporation (NASDAQ:MSFT) are Eagle Capital Management and Yacktman Asset Management with 33.2 million and 32.9 million shares approximately.