Microsoft continues its acquisition spree with Nuance

April 13, 2021 15:30

Last March, Microsoft announced the purchase of Bethesda for $7.5 billion, and now they have confirmed the purchase of Nuance Communications for $19.7 billion, making this their second-largest purchase so far after the $27 billion purchase of LinkedIn in 2016.

Nuance Communications works with speech recognition systems through the use of artificial intelligence, which allows it to enhance its cloud services, according to the statement issued by Microsoft. In addition, Microsoft strengthens not only your business services division, but also their medical division, as Nuance is one of the leading providers of medical software as well as medical transcription systems that digitize all types of medical tests such as CTs and MRIs.

This may not be Microsoft's last purchase this year, since as we mentioned last March, the company also has an interest in the possible purchase of the popular communication platform Discord, for $8.4 billion.

As we mentioned on previous occasions, Microsoft is following a strong upward trend in recent months, which has been strengthened after the breakdown of the triangle at the beginning of this month of April, which has led it to set new all-time highs.

If we look at the graph, although the uptrend seems clear, we can see that the price is currently at overbought levels as we can see in its stochastic indicator, far from its moving averages and its support levels. We can rule out that the price may make a correction in the next few days or enter a lateral period to get out of said overbought accumulation.

Source: Admiral Markets MetaTrader 5. Microsoft daily chart. Data range: from December 9, 2019 to April 13, 2021. Prepared on April 13, 2021 at 12:50 CEST. Keep in mind that past returns do not guarantee future returns.

Price evolution in the last 5 years:

  • 2020: 41.04%
  • 2019: 55.26%
  • 2018: 18.74%
  • 2017: 37.66%
  • 2016: 12%

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