Microsoft stock price took a nose dive today as it is now trading at $42.33, down almost 10% from yesterday’s closing of $47.01. This also means that Microsoft’s market value is down by over $30 billion. Microsoft yesterday announced revenue of $26.5 billion for the quarter ended December 31, 2014. Gross margin, operating income, and diluted earnings per share (“EPS”) for the quarter were $16.3 billion, $7.8 billion, and $0.71 per share, respectively. Following the results, few analysts downgraded to stock to Sell rating leading to plunge in stock price.
The main fear of analysts is regarding declining revenue of consumer licensing due to shift in consumer spending behavior from PCs to mobile devices. Microsoft is a challenger as opposed to leader in the mobile segment and this was the main reason behind the downgrade. Apart from Consumer licensing, all other businesses of Microsoft are growing at a healthy rate.
I consider this decline is stock price as a deal in the market. Interested people can buy Microsoft’s stock at 10% off in the market today. Offer valid for few days only.. 🙂