Microsoft Closes Down 9.25% After Its Earnings Report Fails To Impress The Street

Today, Microsoft shed tens of billions of dollars in value, after its earnings  href="https://beta.techcrunch.com/2015/01/26/microsoft-slips-2-after-reporting-26-5b-in-fq2-revenue-1-1b-in-surface-revenue/">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:

Screen Shot 2015-01-27 at 11.59.24 AM

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.