Microsoft (MSFT) stocks have underperformed compared to the other members of the "Magnificent Seven," which saw gains of 24-70% in 2024. Meta Platforms (META) led the group with the largest growth, while Alphabet (GOOG) posted the smallest increase. Microsoft, however, lags behind even Alphabet, with only a 15.0% rise in its stock price this year. This underperformance highlights significant upside potential, further supported by technical indicators.

Currently, MSFT is trading within a narrowing range, a pattern often indicative of building momentum. This setup could propel the stock back into its ascending channel, with the first target seen at $470-480 per share, where uptrend support aligns. For risk management, a stop-loss order could be placed at $385, providing a balanced strategy for this potential breakout opportunity.