This morning, investors decreased the value of Microsoft stocks to $31.24 (for up to date prices on MSFT Stocks, check Google Finances), which is more than a 11% decrease. This is due to the not so reassuring earnings reports that Microsoft had lately. Analysts including Raymond James and Cowen were behind this downgrade of Microsoft’s Stocks value.
As we follow the money, we see that Microsoft’s earnings are lowering, having earnings of about 66 cents per share, whichare way lower than the 75 cents per share that Wall Street analysts predicted. It would seem that Microsoft Windows is starting to fail, as users are not impressed with how Microsoft has upgraded their once mighty operating system.
Microsoft’s Shares go Down by more than 11%
Also, Microsoft Surface RT sales are not doing so well, and manufacturers that are willing to use the Windows RT platform are rapidly changing their minds. Chief Financial Officer, Amy Hood, puts the blame on computer sales going down, and so, their traditional Windows operating systems are not as well sold:
This quarter our Windows business declined as the device market continued to evolve beyond the traditional PC
She also stated that Microsoft is far from over with Windows 8 and that this will be the form of things to come. Of course, further development is needed, but Microsoft aims to bring Windows 8 to all devices.
We are working to transition the business into this modern era of computing taking advantage of the new scenarios enabled our Windows 8. As we said before, given the complexity of the ecosystem, this journey will take time, but we continue to make incremental progress
For more information on Microsoft’s Earnings this last quarter, take a look at a more detailed report, where you can see how much money they have made so far. Also here, you can see exactly how low PC sales have gotten, which is an important factor in today’s 11 percent drop in stocks value.
We will keep udating this post with new figures if Microsoft’s stock will have a serious movement, be it up or down.