Microsoft's stock takes a hit after analyst issues 'sell' recommendation

The somewhat skewed numbers released Wednesday from the research firm IDC about lower PC shipments caused an analyst at a major financial firm to lower its Microsoft recommendation from "neutral" to "sell" today. That move was blamed as the reason why Microsoft got hit with its largest single day decline in almost two years.

Bloomberg reports that Goldman Sachs analyst Heather Bellini issued her "sell" order today and pointed at the lower PC shipment numbers as the reason for her change. Bellini stated that Microsoft's current financial situation will, in her opinion, "gradually deteriorate unless Microsoft successfully repositions itself as a more meaningful participant in the new era of consumer compute." As we reported before, IDC's numbers don't count shipments of tablet devices, such as Microsoft's Surface Pro and Surface RT tablets.

Bellini's statements were enough to take down Microsoft's stock price 4.4 percent, its biggest single day dip since August 2011. At the moment, Microsoft's stock price is up 8.3 percent since the start of 2013. Two other financial analysts announced this week they were reducing their Microsoft recommendation from "buy" to "neutral."

Microsoft is scheduled to reveal its first quarter 2013 financial results one week from today on Thursday, April 18, where we would hope to get some more information about Windows 8 sales.

Source: Bloomberg | Image via Microsoft

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Goldman Sachs..... One of the companies responsible for the world's economic situation.

Why do people even listen to these clowns, most of them should be in jail...

Well I think we need to thank them for create new Windows OS that can even run well with old hardware. Instead back then, every new Window OS release, we need stronger computer to run it smoothly. Or we may blame it on some OEM PC maker like Packard Bell no longer produce junk machines that broken down often ... Right now I don't see any reason for me to upgrade from my old i7 core computer.

The entire industry of Tablets and PC's are going to head south. The reason is that people have enough electronics and as notebooks evolve into tablet hybrids there isn't really a lot of room in the industry for that much growth.

Maybe Google Glass or the Microsoft equivalent can take off, but sales of all is headed south soon.

Yogurtmaster said,
The entire industry of Tablets and PC's are going to head south. The reason is that people have enough electronics and as notebooks evolve into tablet hybrids there isn't really a lot of room in the industry for that much growth.

Maybe Google Glass or the Microsoft equivalent can take off, but sales of all is headed south soon.

I'm inclined to agree howver i do feel there will be large peaks in sales.
I've done a lot of PC builds for clients lately as a lot of consumers purchased their PC's at the same time thus are moving forward to new machines at the same time.

Traditional PC sales as we know will continue to decrease and there is nothing wrong about it, it is just a matter of evolution. Majority of people just consume content they don't need the big PC furniture in their homes anymore, notebooks, tablets, phones, game consoles etc are more suitable and enough for the them.

Traditional PCs will remain relevant for people like me as a developer who produce the content, who needs multiple monitors, lots of ram, cpu power, etc.

Win 8 not selling is a different story, honestly I've been using for a few months and it does not bring anything radically new to the table since the useless metro stuff is irrelevant on a desktop. I can understand people not seeing the need to upgrade.

Microsoft needs to focus his attention on improving Metro UI for tablets and phones and re focus the desktop for content producers so that we can be more productive. This UI abortion is not needed and it is a waste of resources on their part.

Love the fanboys trying hard to help Microsoft. Microsoft does have potential in the phone and tablet market, though those products aren't a household name yet. But they f c k d up big time with Windows 8. Why did they have to try and turn a desktop OS into a mobile device. I don't want freaking game apps on my desktop like I see on my phone! That's why I have a $500 video card, to play real games. They could have done a better job at tying all their devices together and whoever made the decision to tweak Windows 8 the way it's been tweaked, should get a foot up their rass!

Your thinly veiled MS hater post is way too obvious. The pc,s upgrade path is over, you don't need hi end hardware to post to Facebook go on the web. Andd who plays pc games anymore? So of course they have to move to touch. In a couple of years very pc will be a touch pc. So now the new pc race is making them smaller and more power efficient.

Why on earth would you need a video card that costs that much, unless you're just a gear head. My video card was $80 and it's plenty powerful for the games I play. (Though it was horrible with TOR but that was because TORs engine sucked big time). Anyway, I'm on win8 right now. Nothing is wrong with it, seriously. I find it quite nice.

JHBrown said,
Love the fanboys trying hard to help Microsoft. Microsoft does have potential in the phone and tablet market, though those products aren't a household name yet. But they f c k d up big time with Windows 8. Why did they have to try and turn a desktop OS into a mobile device. I don't want freaking game apps on my desktop like I see on my phone! That's why I have a $500 video card, to play real games. They could have done a better job at tying all their devices together and whoever made the decision to tweak Windows 8 the way it's been tweaked, should get a foot up their rass!

I love the trolls that add nothing whatsoever.

Even better the completely uneducated emotion filled rants!

laserfloyd said,
Why on earth would you need a video card that costs that much, unless you're just a gear head. My video card was $80 and it's plenty powerful for the games I play. (Though it was horrible with TOR but that was because TORs engine sucked big time). Anyway, I'm on win8 right now. Nothing is wrong with it, seriously. I find it quite nice.
I won't even waste my time answering this question. You obviously don't play games. I would invite you to Google the latest games and then see if your $80 dollar card is good enough. Please post back.

mrdeezus said,
Your thinly veiled MS hater post is way too obvious. The pc,s upgrade path is over, you don't need hi end hardware to post to Facebook go on the web. Andd who plays pc games anymore? So of course they have to move to touch. In a couple of years very pc will be a touch pc. So now the new pc race is making them smaller and more power efficient.
Who plays games anymore? How about you check on that question thoroughly. After working 8-10 hours a day and then attending Grad school 4 nights a week, you damn well better believe I want to unwind.

headsoup said,

I love the trolls that add nothing whatsoever.

Even better the completely uneducated emotion filled rants!

Funny how everyone is troll when they don't agree with Microsofts propaganda. Numbers don't lie my friend and no matter what you may think, Windows 8 is a failure. This has been mentioned thousands of times, Windows 7 is the new XP unless Microsoft pulls their head out of their.......

JHBrown said,
Funny how everyone is troll when they don't agree with Microsofts propaganda. Numbers don't lie my friend and no matter what you may think, Windows 8 is a failure. This has been mentioned thousands of times, Windows 7 is the new XP unless Microsoft pulls their head out of their.......

No people are trolls when they state opinions as 'truths.' You have no idea what MS's sales targets are, just like the rest of us. You also seem to believe XP was a wild success initially; pretty sure there was much the same carry-on when it was released...

My 4 years old computer (Xeon W3520, 12GB RAM, X25-M SSDs, Radeon 6970, etc.) still can run today's games (maximum quality), and runs Windows Vista/7/8 perfectly

I won't buy a new computer… And Windows 8 is certainly not an argument to replace it.

myxomatosis said,
My 4 years old computer (Xeon W3520, 12GB RAM, X25-M SSDs, Radeon 6970, etc.) still can run today's games (maximum quality), and runs Windows Vista/7/8 perfectly

I won't buy a new computer… And Windows 8 is certainly not an argument to replace it.

Well obviously you have no reason to replace your computer, its not old at all even though you are using older hardware they were teir 1 during their time. That's like someone's GTX Titan.... well its prolly good for another 10 years.

onionjuice said,

Well obviously you have no reason to replace your computer, its not old at all even though you are using older hardware they were teir 1 during their time. That's like someone's GTX Titan.... well its prolly good for another 10 years.


And that's the problem. Regardless of the OS people don't want to upgrade their computers because there's no real need to.

My laptop is 3 years old, plays bf3 on medium, bioshock infinite on high etc. There's no point for me to pay another $1000+ because it does everything I need it to do just fine.

For people who just use their computers for work and email, Facebook, read the news etc there's even less of a reason.

It could be because of consoles or it could be because of the lack of technological improvements. The jump from Pentium 4 to the core 2s was massive. From the core duos to the i-series was also pretty big. But since then not really. They've been some nice changes but nothing really groundbreaking. Same thing on the gpu front. Sure if you want to play games at ridiculously high resolutions with 16x AA yeah you'll need a new gpu every year. But most people don't and their gpu lasts them 3+ years.

Exactly… hardware isn't evolving as fast as it did 10 years ago.

A first generation i7 is still competitive versus the newest i7 processor… a decent 3 years old graphic card can still run most games on medium-high.

Some years ago, we went from AGP port to PCI-Express… gamers had to change their motherboard/CPU/RAM… but 4 years old motherboard already had a PCI-Express port that can receive all the newest graphic cards… etc.

In fact the only big evolution desktop PCs saw in the last few years? SSDs. And you can install a 2013 SSD in a 2008 PC so…

Makes sense.

Windows 8 is not selling - Fanboys can say what they want, are they at 4% yet?
Rumoured Xbox to be expensive and always on.
Windows RT isn't the hit it was meant to be.
Windows Blue is a service pack.

Not to mention, Microsoft seems to not give a **** about what their customer base cares about.

Sonne said,
Don't forget Windows Phone so far has been a bust

No no, according to WP fanboys Lumia is a hot selling phone. I wonder when it will out sell the old iPhone 3G lol.

Nashy said,
Makes sense.

Windows 8 is not selling - Fanboys can say what they want, are they at 4% yet?
Rumoured Xbox to be expensive and always on.
Windows RT isn't the hit it was meant to be.
Windows Blue is a service pack.

Not to mention, Microsoft seems to not give a **** about what their customer base cares about.

^This^

Nashy said,
Makes sense.

Windows 8 is not selling - Fanboys can say what they want, are they at 4% yet?

True

Nashy said,
Rumoured Xbox to be expensive and always on.

Keyword - rumored. We won't know until it comes out and see how people respond to it. Also how big of a revenue stream has the Xbox division been anyways (regardless of its success)?

Nashy said,
Windows RT isn't the hit it was meant to be.

At present time - yes. But who ever said it was meant to be that big of a hit though, especially from the very beginning? It is Windows built for a completely new CPU architectures after all and hasn't even been out for a year...

Nashy said,
Windows Blue is a service pack.

It's supposed to be more than a service pack but how do you even know what exactly it will come with?

Nashy said,
Not to mention, Microsoft seems to not give a **** about what their customer base cares about.

That's a load of BS... according to you their customer base is Windows and Xbox pretty much? What about Office and Office 365? What about Windows Server Family (Hyper-V, Exchange, etc.)? What about their other Enterprise products (Dynamics, etc), What about Azure and other cloud initiatives?

Although Windows client is in fact a major revenue source for them, they have a lot more customers in a lot more verticals that are perfectly happy. Just because they are going through a major shift in direction in their consumer divisions, it sure as hell doesn't mean certain doom for them...

Edited by Obry, Apr 12 2013, 1:37am :

onionjuice said,

No no, according to WP fanboys Lumia is a hot selling phone. I wonder when it will out sell the old iPhone 3G lol.

Instead talking out my ass like you I'll rather have facts tell the story for me.

http://www.nokia.com/global/ab.../reports/results---reports/

http://investors.htc.com/phoen...697&p=irol-reportsother

The Q1 is not submitted yet but if you have even a half a brain you'll find the numbers you are looking for. A hint, they are in the millions.

You're right, I didn't discuss a lot of the compant. Only the big bits I know about.

They've become customer hating arrogant twats like Apple was 10 years ago.

lctb51 said,
I really miss the simple days of Windows 9X using a old pentium III computer! I especially miss the 98 start up sound and all the retro programs! There was an old Year 2K checker and Ski Free game on my old computer! I also miss all the sounds Windows made too. Ah, the good old days.

http://www.youtube.com/watch?v=tajDxBaPBBM

I had exactly the same thoughts when reading the article. /s

I'm sorry, these analysts are so full of shyte that if they were made an enema, they could be collectively buried in a single matchbox.
While Microsoft probably does need to revise the course they're on regarding this dud "new era of iPad computing", they're doing just fine overall. Microsoft is a large company with numerous divisions that make multitude of products and, afaik, business products are the ones that make the most of their profit instead of this consumer fagjjjj... *cough* computing.

goldman sachs never ceases to amaze. they've been putting a sell on nokia forever, and if you go check out nasdaq you will see they are the ones buying up all the shares. in fact,they have the most shares out of any single group. im not even joking. its that blatant.

http://www.nasdaq.com/symbol/n...ership-summary#.UWcrEMDD9dg

their share number keeps going up everytime the share price drops,and they keep sell rating it

svnO.o said,
Seems like a conspiracy to me. Nobody should trust Goldman Sachs.

Yah lets all listen to neoWIN members instead telling us to buy MSFT shares when the company's future is down the drain. Microsoft is only going downhill at this point.

onionjuice said,

Yah lets all listen to neoWIN members instead telling us to buy MSFT shares when the company's future is down the drain. Microsoft is only going downhill at this point.

^This!

onionjuice said,

Yah lets all listen to neoWIN members instead telling us to buy MSFT shares when the company's future is down the drain. Microsoft is only going downhill at this point.


Yep, Apple drops 40%, and the fanboys want us to believe they a strong future ahead of them. MSFT drops 4%, and it is the end for them. Apple fanboy logic on display for all to see.

SoylentG said,


Yep, Apple drops 40%, and the fanboys want us to believe they a strong future ahead of them. MSFT drops 4%, and it is the end for them. Apple fanboy logic on display for all to see.

Yeah because Apple isn't the most valued company in the world? It didn't move up from the depths of Fortune 500 to the #1-2 company.

Oh I remember when Apple shares were $200 a piece. What are they now? Can you say the same about Microsoft?

onionjuice said,

Yeah because Apple isn't the most valued company in the world? It didn't move up from the depths of Fortune 500 to the #1-2 company.

Oh I remember when Apple shares were $200 a piece. What are they now? Can you say the same about Microsoft?

Great logic. You win the sharemarket!

headsoup said,

Great logic. You win the sharemarket!

No, the reason you wouldn't sell apple shares is because the future of computing is in the mobile space which APPLE CREATED and it's clearly the leader.

onionjuice said,

No, the reason you wouldn't sell apple shares is because the future of computing is in the mobile space which APPLE CREATED and it's clearly the leader.

Really, because worldwide it seems Android is the leader at the moment and Apple's shares are down quite a bit.

Your argument has as much credibility as those you are arguing against for MS.

headsoup said,

Really, because worldwide it seems Android is the leader at the moment and Apple's shares are down quite a bit.

Your argument has as much credibility as those you are arguing against for MS.

Lol? Android as a whole contains of soo many different phone manufacturers. Compare iPhone market share vs the Galaxy, etc.

That's like saying buy Fujitsu shares because they make notebooks that run on Windows 7 and Windows 7 has (very good) share but don't buy apple shares because Macs only have a 5% market share. When the truth is Apple still sells more Macs than fujitsu does windows laptops.

onionjuice said,

Lol? Android as a whole contains of soo many different phone manufacturers. Compare iPhone market share vs the Galaxy, etc.

That's like saying buy Fujitsu shares because they make notebooks that run on Windows 7 and Windows 7 has (very good) share but don't buy apple shares because Macs only have a 5% market share. When the truth is Apple still sells more Macs than fujitsu does windows laptops.


Apple doesn't give sale numbers on individual iPhones, cant really compare it. Although it is very safe to assume the S3 is outselling the iPhone5. So the guy you commented on still has a valid point mate.

Microsoft isn't going anymore. Apple has died off before, why not again. Android might be on its last legs with Samsung coming out the corner with their own OS. And they will drag other OEM's towards them away from Android.... Without Samsung, where is Android?

As one said that Apple invented the current mobile tech, funny. They have helped make it more popular and more available to the general public. But please get out of your shell. The only country where Apple is doing great is in America. Here in Europe, Asia and the other 6billion people on the this planet. It isn't as popular.

Microsoft has proven to be the only stable tech giant in the last 3 decades. And their position is rock solid, yes Windows 8 seems to get allot of hatred and Microsoft is getting shouted at by many people. But Microsoft always received tons of hatred, the only release they haven't has been Windows 7.... Get real people. Microsoft is here to stay no matter how hard some of you crybabies want them to die a horrible fast death.

onionjuice said,

Oh I remember when Apple shares were $200 a piece. What are they now? Can you say the same about Microsoft?

Oh I remember when Apple shares were $705 a share. What are they now? $430?

Ouch.

onionjuice said,

Yah lets all listen to neoWIN members instead telling us to buy MSFT shares when the company's future is down the drain. Microsoft is only going downhill at this point.

You do know anti-MS whiners are as bad as pro-MS whiners?

onionjuice said,

Yeah because Apple isn't the most valued company in the world? It didn't move up from the depths of Fortune 500 to the #1-2 company.

Oh I remember when Apple shares were $200 a piece. What are they now? Can you say the same about Microsoft?

Irrelevant, MS has divided their stocks many times. Apple has never done this as it makes their stocks appear to have an inflated price.

rfirth said,

Oh I remember when Apple shares were $705 a share. What are they now? $430?

Ouch.

Do you also remember where MS shares were in 2003?

I don't really think that tablets and smartphones are what are cutting into sales of windows. I think what's cutting into it is that computers have simply gotten good enough. since windows vista system requirements have held steady. people don't feel like they are compelled to upgrade because of sluggish performance.

When people say good enough they have to look at what they're using their computers for.

Technology doesn't simply "finish". If PCs are "good enough", that means our demands on computers aren't changing. So the challenge is not to make PCs better at what they already do, but to figure out what needs to be done to raise people's expectations of the devices.

That means that the PC as it's understood today CANNOT stay the same. The old dog, crotchety conservative attitude that so many tech 'enthusiasts' have willingly subscribed to, where a PC is a PC is a PC and don't you dare change my PC because it's a PC and that's what I want it to be--that attitude needs to be marginalized and ignored. It's cancerous to personal computing; far moreso than any single company today.

matt4444 said,
Meh, this woman knows nothing. I'm going to buy some Microsoft shares amongst others.

Heather Bellini works for Goldman Sachs, but is based out of San Francisco. She covers only tech companies: Amazon, Red Hat, Oracle, VMware, Facebook, etc. She has buy ratings on a lot of absurdly overpriced priced stocks, including my favorite, Salesforce.com. (The company has hovered around zero profit for years.)

Note: this does not mean that you should go out and buy shares in Microsoft. You should buy Microsoft (or any stock) after doing your own analysis -- not just to do the opposite of what Heather Bellini recommends.

Stock manipulation get a big company like this to ssue a sell rec. watch stocks drop. start buying and wait for neutral or buy status...

seriously stocks his a game of itself completely irrelevant to how the company itself is doing.

TomJones said,

Note: this does not mean that you should go out and buy shares in Microsoft. You should buy Microsoft (or any stock) after doing your own analysis -- not just to do the opposite of what Heather Bellini recommends.

Yep, that's why I'm buying stocks in Microsoft, due to my own analysis. I recon shares will increase when the next Xbox is announced and Blue etc.