Downgrades, price cuts flood over beleaguered Microsoft after earnings; shares plummet over 10%

Nomura analyst Rick Sherlund writes today 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.”

Sherlund has cut his rating to Neutral with the price target lowered to $50 from $56.

Citi has cut Microsoft from “Neutral” to to “Sell.” JPMorgan has downgraded Microsoft to “Neutral” and cut their target price to $47 from $53. MKM Parters has downgraded to Neutral.

In premarket reading, shares of beleaguered Microsoft shares are down over 10 percent.

MacDailyNews Take: This is what failure looks like.

As we explained almost exactly one year ago, just before Nadella was officially named Microsoft CEO:

It’s tough, if not impossible, to deliver the type of change Microsoft needs when you’re a lifer. 🙂

Related articles:
Microsoft down over 4% in late trading; Windows revenue under pressure – January 26, 2015
The Mac is back: Why Apple just set an all-time Mac sales record – October 22, 2014
Wall Street Journal reviews Apple iMac Retina 5K: ‘Oh boy, will you want one’ – October 21, 2014
Apple’s Mac a surprise hit in Q414 results; market share now highest since 1995 – October 21, 2014
NPD: Apple Mac grabs 26.8% U.S. consumer market share – September 24, 2014
Apple Macintosh continues to dominate in personal computer customer satisfaction – September 23, 2014
Apple kills the Windows PC and no one seems to mind – April 30, 2014
Milestone: Apple computers outsold Windows PCs in Q4 2013 – February 12, 2014
Steve Jobs’ revenge: Latest PC market forecast projects historic 10% downturn – December 3, 2013
Apple kicks Wintel in the teeth; Windows PC market share plummets to all-time low – August 1, 2012
Apple Mac, Windows PC killer – January 12, 2012


  1. So why is Apple down almost 2%? Stupid anal-ists can’t tell the difference between a company that is firing on all cylinders versus one that it sputtering just to keep running and I’m talking about Microsoft here. It just infuriates me when one company has bad earnings that the whole market goes down when it does not have anything to do with Apple.

  2. My company recently conducted a customer satisfaction survey. As an incentive, respondents were give the option to put their name in for a drawing for a Microsoft Surface. 14% said No.

    1. My church uses iMac DV Special Editions with biblical story software in the Sunday School curriculum. These things are 16 years old. For more flexible use of space consideration is being given to move to iPads, but the software research isn’t promising. The church was offered 10 free Surface tablets. That’s a bit telling. So was the articulate response given about all the factors that must be considered beyond acquisition cost.

  3. Well maybe the good news will be when Apple reports their stellar earnings the market will respond more favorably. M$ results will highlight how well Apple is doing in comparison.

  4. beleaguered |biˈlēgərd|
    verb [ with obj. ] (usu. as adj. beleaguered)

    • beset with difficulties: the board is supporting the beleaguered director amid calls for his resignation.

    ORIGIN late 16th cent.: from Dutch belegeren ‘camp around,’ from be- ‘(all) around’ + leger ‘a camp.’

  5. When MSFT hits 10 cents a share, they could always switch to a standard shareware business model. You only pay if you like, which’ll then leave them entirely funded by obsolete IT doofuses.

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