MSFT ended the week near its 52-week high at 524; at these levels it needs a great earnings call within 5 days to go higher, which is possible, but a pullback would likely retest the 200-day average around 470. Its $1200-1800 Xbox handheld will likely lose money on hardware.

after losing the top spot to Nvidia and Microsoft over the past two years

Moving on to Microsoft. The stock started the week at 530, and shares have fallen by about one percent this week. It finished the week at 524, although you are still not far from the 52-week high.

This comes as the company is revamping its plans for Xbox. They have a handheld device and a plan for a next-generation Xbox for the holiday season in 2027 and 2028. Now, here's the shocking part.

The price of this device is expected to range between $1200 and $1800. I think they are watching what Apple is doing with its phone prices and saying to themselves, " We can raise the prices of these devices."

But here's the thing: because of the hardware costs these things will incur, Microsoft probably won't make any money from them. They will make up for it later when it comes to software, which is why some analysts say it may be hard to accept, especially since the company is already struggling financially with regard to the Xbox, and now they will offer it as a product to attract customers at a loss. We'll see if that's the right strategy.

Now, the company we talked about regarding "Anthropic". They have signed a major deal with UK-based company Endscale. Microsoft makes that deal again. These deals on paper are worthless until the graphics processing units are powered on and the money starts flowing, and the only company doing that at a rapid pace.

Again, we'll talk about them in a moment, but it seems that Endscale has had difficulty securing power in the UK, and I'm not aware of what's happening there. I do n't think it's much different from what's happening here in the United States, although some of these European companies may be under more pressure, as the planned IPO of Endscale seems to be surrounded by some uncertainty.

Microsoft will also announce its earnings within 5 days. Similar to Meta, you are now at high levels. So, for this stock to go any higher, let me tell you, they need to make a great earnings call .

This is possible. But if a pullback occurs, it is likely to retest the 200-day moving average here at the 470 level.