Microsoft’s Stock Price Goes Down 11.4% On A Single Day, Market Responds To Surface RT Worries

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MSFT biggest Stock Fall In history

Microsoft’s stock price fell more than 11 percent on Friday, their biggest plunge in more than 11 years. Microsoft reported their quarterly financial results yesterday of $19.90 billion in revenue and a net profit of $4.97 billion. But the stock value down is due to whopping $900 million write-off of Microsoft’s Surface RT inventory. Microsoft recently reduced $150 off the price of the Surface RT tablet to further increase the sales.

Steve Ballmer said the following statement on Surface and Windows based tablets,

“We are working hard to deliver compelling new devices and high value experiences from Microsoft and our partners in the coming months, including new Windows 8.1 tablets and PCs,”

 



About Author

Pradeep, a Computer Science & Engineering graduate.

  • Iain Simpson

    why do these stupid wall street analysts keep setting the bar so high, they did the same with Nokia, they are just morons out to line their own pockets with money.

    • tropolite

      + people just worry over anything when it comes to the market. Anyone can drop anything on the (almighty infallible), internet and people just eat it up.
      When you can do that and then make money on the negative outcome of stock well there will always be this volatility over very little.

    • Memristor

      Why, because they can make a solid profit.

      1. Bring down the stock price
      2. Buy stock
      3. Wait for stock to recover
      4. Sell at huge profit.

  • dortyboy

    Wall street morons don’t know anything. In this day and age analyst want to set the bar so high. No wonder companies cook there books. Enron anyone. That’s why certain CEO are telling them off because these idiots don’t even know how to run a business

    • Yuan Taizong

      Exactly, I’ve been saying this for years.

  • DarthTigris

    Oh man I wish I had some cash to burn right now. I’d be all over this!

  • Bugbog

    The Stock Market: The Single biggest gambling con game ever invented (and legalised) by man!

    Whenever you read about the “markets” and volatility, it’s always about people gambling in the short-term to make money by causing someone else to lose it, in instances like this (and “analyst” reports that lack little substance); matters that have little bearing on reality!

    Re: The “market” drops 11% due to issues relating to the Surface stock?! I don’t recall it dropping this much when they did a $6 Billion write-down last year? SMH!!

  • Florin N

    This is outrageous.Analysts and shareholders will eventually take down huge companies, if things get in this direction we see lately.Why do they give them so much power? All of this while knowing these idiots don’t know anything about businesses, technology and all they dream is money.This has to stop!

  • efjay

    The stock market reaction is to be expected considering the fact that Microsoft lost almost a billion dollars because of Windows RT. In less than a year. That indicates something seriously wrong with that product and the sooner it is retired the better.

    • gmx1

      I think the surface Rt is misunderstood so people didn’t know what to expect. However with the current price drop it makes so much sense to go and buy one. I was ready to buy a low price android tablet but when there was so little difference in price between sluggish android devices and thus quality product the decision was so easy! I really like my surface rt although I would like more features from windows phone pass to windows. For example the excellent keyboard corrections from windows phone.

      • clay113

        Same here, just wish my Surface RT was faster. I have not been impressed with Tegra.

    • DaiHoss

      Xbox 360 was out for nearly 4 years before it made a profit. But they should have retired that earlier because there was something seriously wrong with the product, going by your logic.

  • UMovies

    that’s so stupid them and other oems stopped selling the rt because they are all switching to the snapdragons, rt isn’t going any where but it will be like win phone 7, all the new features coming with the new rt wont be backward compatible. rt tablet are gonna blaze very soon, id even get one , there not gonna be a speed difference from a rt and a intel, it just gonna be different. example the fish test for snapdragons produce as many fishs as the intels and amds, can do 1080p gaming on two screeens, and new snapdragon can even do 4k video decoding and encoding , they will go toe to toe with win pro systems and even offer some thing that the x86 chip don’t, and run cooler and last longer, etc., when the new rt’s come out they are goinna make the ipads look like itoys, their just making a switch from now on it qualcomm’s baby, that’s all it is so don’t panic people or listen to the hype

  • Memristor

    Microsoft doesn’t have a problem with its products, they have a serious problem in advertisement and marketing. WP8, Windows RT, Windows 8 all excellent products, but the customers don’t get it.

    • jimski27

      In the last year Microsoft has done a good job in turning their marketing awareness around. But Apple had a very big head start. Its going to take more time and money for consumers to get the message.

  • TryllZ

    Trully they needs marketing genius, promoting products that bash other products like the ad for Surface vs iPad isn’t going to help, they need to market their products basd on its better features when compared to competitors…..