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This Is Why Microsoft and Nvidia Were Up on Friday

By Jose Najarro – Aug 23, 2021 at 11:00AM

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Microsoft and Nvidia had big news on Friday that could affect them in the long term.

In today's video I look at Nvidia's (NVDA -0.83%) and Microsoft's (MSFT -0.60%) most recent news and share my thoughts from a bullish and bearish perspective. Here are some highlights from the video: 

  1. Nvidia reported its strong second-quarter earnings after the market closed on Aug. 18. Days after reporting earnings, Nvidia continues to be upgraded by numerous investment analysts, causing bullish momentum on the stock price. 
  2. Regarding the ARM acquisition by Nvidia, U.K. regulators have determined that there might be anticompetitive difficulties if the deal goes through and that they need more time to do a full investigation. The deal was scheduled to close in the early months of 2022, but a complete study by U.K. regulators could push this out further than expected. 
  3. Microsoft is increasing the price of its 365 products. The increases in price will range from as low as 8.6% to as high as 25% and will take effect on March 1, 2022. Office commercial and cloud products make up a healthy portion of Microsoft's revenue, and investors are very excited about the extra income from the price hikes. 

Click the video below for my full thoughts and analysis. 

*Stock prices used were the midday prices of Aug. 20, 2021. The video was published on Aug. 20, 2021.

Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors. Jose Najarro owns shares of Microsoft and Nvidia. The Motley Fool owns shares of and recommends Microsoft and Nvidia. The Motley Fool has a disclosure policy. Jose is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

Stocks Mentioned

Microsoft Stock Quote
$253.49 (-0.60%) $-1.53
Nvidia Stock Quote
$167.36 (-0.83%) $-1.40

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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