Here’s why Microsoft, ImmunoGen, and Three Other Stocks Are Trending on Tuesday

Microsoft’s Debt Rating Under the Microscope

Credit ratings agency Moody’s has put Microsoft Corporation (NASDAQ:MSFT)‘s Aaa senior unsecured rating under review for downgrade after the software giant agreed to purchase LinkedIn Corp (NYSE:LNKD) for $26.2 billion in cash. Although the acquisition could improve Microsoft’s cloud based services platform, the deal will increase Microsoft’s gross debt-to-EBTIDA ratio to around 2x, or 0.5x more than what Moody’s considers is acceptable for a triple A credit rating. The downgrade might not cost Microsoft much in interest fees, however, seeing as analysts at Moody’s have said any downgrade would ‘likely be limited to one notch’.  Overall, 144 funds in our database had a long position in Microsoft Corporation (NASDAQ:MSFT), while 41 funds were long LinkedIn Corp (NYSE:LNKD) at the end of the first quarter. Microsoft is also in the news after introducing a new Xbox at E3 conference.

FAA fine for Amazon.com

Amazon.com, Inc. (NASDAQ:AMZN) is in the spotlight today after the U.S. Federal Aviation Administration proposed fining the company $350,000 for shipping a product that purportedly violated safety regulations and injured several people handling the package. If enforced, the fine will be the largest fine imposed by the FAA on Amazon in the e-commerce giant’s history. Although the fine isn’t very much relative to Amazon’s revenues or profits, the company’s relationship with the FAA is something to closely monitor as Amazon potentially expands into the logistics business in the near future. A total of 133 funds tracked by Insider Monkey owned shares of Amazon.com, Inc. (NASDAQ:AMZN) at the end of the first quarter, down eight funds from the previous quarter.

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