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Microsoft Corporation (MSFT), Intel Corporation (INTC), Apple Inc. (AAPL): Tech Investors Need a Chill Pill

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Investors often fixate on a single narrative during earnings season, throwing otherwise solid companies under the bus if a solitary figure doesn’t meet some imaginary expectation made up by Wall Street.

Microsoft Corporation (MSFT)This quarter, the focus is on PCs, or specifically the decline of PC sales. It shouldn’t be a surprise that PC sales are down because it’s been reported for months, but the market still freaked out when both Microsoft Corporation (NASDAQ:MSFT) and Intel Corporation (NASDAQ:INTC) reported soft PC sales. A little perspective and a chill pill may be needed for those overreacting right now.

Three companies that aren’t going away
Microsoft Corporation (NASDAQ:MSFT)’s Windows division sales fell 6% on a non-GAAP basis in the second quarter, but when compared to an 11.4% decline in PC sales, that’s not all that bad. What’s being overlooked are two larger businesses for Microsoft Corporation (NASDAQ:MSFT): Server and Tools and Microsoft Business. Server and Tools sales were up 9% in the second quarter and the Microsoft Business division saw a 14% jump in sales. Even if we pull out sales from onetime upgrade offers, Microsoft Corporation (NASDAQ:MSFT)’s sales were up 3% for the second quarter, not bad considering how bad the PC market is. I’m not saying Microsoft Corporation (NASDAQ:MSFT) is a high-growth company anymore, but projecting its demise is very premature.

Intel Corporation (NASDAQ:INTC)’s story is even more interesting. Revenue was down 5.1% in the second quarter due to a 7.5% decline in PC client sales, the company’s biggest segment, but it may be at an inflection point as it tries to get into mobile. Revenue was up 2% from a quarter ago and next quarter management expects sequential revenue growth of 1.6% to 9.4%. After winning the Samsung Tab 3, the company may be gaining momentum in mobile with a 14 nm chip coming out next year.

Apple Inc. (NASDAQ:AAPL) is another company that can’t seem to wow investors, even with $6.9 billion in quarterly income. A 1% increase in sales won’t get anyone excited, but with a dominant position in smartphone and tablets and a balance sheet that would make most countries drool, Apple Inc. (NASDAQ:AAPL) isn’t going anywhere anytime soon. Let’s not forget the investors in Samsung were also disappointed with sales this quarter, so when we put Apple Inc. (NASDAQ:AAPL)’s slowdown into perspective, it’s not so bad.

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