These stocks are forming a ‘death cross,’ including a major AI tech play
“Magnificent Seven” titan Microsoft is among the stocks that might soon trigger an ominous technical indicator that’s often interpreted by investors as a sign of potential future weakness. Known as a ” death cross ,” the pattern occurs when a stock’s short-term moving average — commonly calculated over 50 days — falls below its longer-term moving average, typically measured over 200 days. That’s viewed as a bearish signal that suggests more downside risk may lie ahead. Besides Microsoft, other stocks such as Dell Technologies , Paramount Skydance , NetApp and Best Buy are also nearing this technical threshold. The potential death crosses are emerging in a volatile week for stocks. U.S. equities suffered big losses on Tuesday after investors gamed out escalating trade tensions tied to President Donald Trump’s renewed push to acquire Greenland. But stocks rallied on Wednesday after Trump, speaking at the World Economic Forum in Switzerland, ruled out using military force to control the Danish territory. Paramount Skydance Stock in the owner of CBS Television currently has a 50-day moving average of $14.03, dangerously close to its 200-day moving average of $13.91. The company, formed last August after the merger of Paramount Global and Skydance Media, is down about 2% since the combination. The looming death cross comes after Paramount Skydance last week sued Warner Bros. Discovery as part of a hostile takeover plan in a three-way contest with Netflix. Paramount also told Warner shareholders that it intends to launch a proxy fight. In December, Warner Bros. Discovery agreed to sell its studio and streaming assets to Netflix, and on Tuesday Netflix improved its all-cash offer after Paramount Skydance pressure. Microsoft Microsoft’s 50-day moving average currently sits at $482.65, a shade below its 200-day moving average of $482.96. Shares of the Windows and XBox giant have added just 3% in the past 12 months. NetApp Data storage stock NetApp’s 50-day moving average is $109.74, while its 200-day moving average is $107.21. On Tuesday, Morgan Stanley downgraded the IT hardware maker, citing rising component costs and softer technology spending. The investment bank downgraded shares of NetApp to underweight from equal weight. NetApp stock has tumbled 22% over the past 12 months.
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