Microsoft shares fall by 9% following disappointing earnings report

Not very many people were impressed with Microsoft’s quarterly earnings report yesterday which has prompted the company’s shares to fall by around 9%, bringing the price to less than $43 per share. This seems to be a response to Microsoft’s disappointing commercial and consumer licensing revenue that its receives from Windows and Office.

Microsoft shares have fallen 9 percent in trading this morning, to less than $43 a share, after the company’s earnings report Monday afternoon. Investors appear to be reacting to the lower commercial and consumer licensing revenue reported by the company for its flagship Windows and Office franchises. Several analysts downgraded Microsoft’s shares following the earnings report, citing underlying trends in the company’s earnings report. Rick Sherlund, the Nomura Research analyst who has covered the company since it went public, wrote in a note to clients, “After a lengthy 16-month period of multiple expansion for Microsoft’s stock, we see a tougher transition ahead, and move to the sidelines with a Neutral rating on the stock, down from Buy.” He reduced his price target to $50 from $56 along with the downgrade.