Microsoft's stock falls after bad earnings
World’s largest Computer technology corporation, Microsoft,
is down 8.6% this morning.
The
stock has been doing worse and worse since the company released earnings. Initial
reaction to the release sent the stock down 2.5%. Then it was 5%, then 6%. Now
it's down over 8%.
Microsoft's
Windows business is finally feeling the effect of the collapse of the PC
industry, and the failure of Windows 8 to slow the iPad.
The
Windows division's operating income was down 55% on a year-over-year basis,
which dragged down the company's EPS. It also took a $900 million charge on the
Surface RT, its iPad-wannabe tablet.
After
posting earnings, Chief Financial Officer, Microsoft, Amy Hood, who spoke to
Bloomberg, said that "it will take a long time" for Microsoft to make
enough off tablets to erase the losses in the traditional PC market.
Microsoft's
enterprise businesses remain strong, but that's not enough to keep investors
happy.
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