Today, Microsoft shed tens of billions of dollars in value, after its earnings failed to impress the investing classes. Microsoft closed down 9.25 percent in regular trading.The company’s shares slipped after-hours yesterday by several points in the immediate aftermath of the report, which indicated that Microsoft had earned $0.71 per share on revenue of $26.5 billion. The latter figure represents a modest revenue beat.
Microsoft’s stock failed to turn positive during its earnings call, in which the company predicted very modest short-term growth. The company forecasted roughly 5 percent revenue growth for its current fiscal year. Foreign exchange issues stemming from a strong dollar and macro conditions in China, Russia and Japan were noted points of friction.
Here’s the chart:
Microsoft’s shares have been on a tear in recent months, and even with today’s sell-off, remain comfortably over the ever-important $40 per share threshold. This morning, however, saw Microsoft pick up six new ratings from analysts: one sell, three holds and two buys — there is some dissension among the nattering classes as to where Microsoft’s shares are going next.
According to Yahoo Finance, Microsoft is still worth $386 billion, so I doubt there are too many tears in Redmond today.