When a stock breaks out of a well-formed base, you normally want to see the Relative Strength Rating exceed 80.

Microsoft is set to report fiscal second-quarter earnings after the market closes Wednesday, with analysts largely bullish despite what Morgan Stanley called a growing “wall of worry."

Microsoft 's ( MSFT 0.22%) quarterly results contained several offsetting factors to the mostly good figures overall. *Stock prices used were the afternoon prices of Feb. 2, 2025. The video was published on Feb.

With gains of just over 12% last year, Microsoft (MSFT) stock underperformed not only other “Magnificent 7” constituents but also the S&P 500 Index ($SPX). 2025 hasn’t looked good for the stock either and it is in the red so far this year.