Investors unimpressed with Microsoft's profit gain

By IVCPOST Staff Reporter

Jul 25, 2013 09:56 AM EDT

After its quarterly earnings release last Thursday, Microsoft stock decreased by almost 10% of its value. Investors expressed their concern regarding this latest data, saying that the tech company's recent performance was "sub-par".

This was a different reaction from last quarter's report of a 10% increase, equal to about US$20 billion. The tech titan's profits also gained to about US$6 billion while last quarter, Microsoft suffered a slight loss in profits.

Despite the high earnings of the company, investors were not looking very impressed. Microsoft's US$900 million adjustment charge to its tablet units suggested that the company has nothing to fight with in the smartphone and mobile computing industry. According to analysts, since the future of the tech industry lies in the smartphones and tablets (where the company failed miserably), it's no wonder why investors were extremely fearful.

In the present, Microsoft is salvaged by its consistent moneymakers - the Office Suite and the Windows OS. Analysts predicted that the company will continue to benefit from these cash cows, but in the far future, the company might suffer the greatest loss.

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