Microsoft Stock down

Microsoft Misses Expectations Due to Strong Dollar and Slowing PC Sales

Microsoft (MSFT) announced on the 26th (local time) its earnings fell short of market expectations. Analysts say it was hit by a strong dollar, slowing PC sales and a decrease in advertising spending.

Microsoft closed at $251.90, down 2.68% from the previous day. However, the stock price has declined in after-hours trading after the announcement of earnings after the market close, and is now slightly rising. The stock is down about 25% this year.

Microsoft reported revenue of $51.87 billion for the quarter ended June. This was an increase from $46.15 billion in the same period last year, but fell short of market expectations.

It also reported net income of $16.74 billion and earnings per share of $2.23. This was up from $16.46 billion ($2.17 per share) in the same period last year, but also fell short of expectations.

Analysts were expecting earnings of $2.29 per share and sales of $52.38 billion, on average, after Microsoft lowered its forecast last month as a result of a stronger dollar. But things appear to have gotten worse since the company’s warning.

The company also said ad revenue fell on LinkedIn, search and news. Sales of the personal computing segment were $14.4 billion, with an estimate of $14.68 billion.

Changes in macroeconomic conditions and other unexpected factors impacted our financial results this quarter,” Microsoft said in a press release.

Microsoft has benefited from the growth of its Azure cloud computing product in recent years, a boom in personal computer sales and increased demand for telecommuting. As a result, software usage increased and earnings improved.