Microsoft Corporation (NASDAQ:MSFT) has fallen out of favor with three of CNBC’s Fast Money Traders.
In a discussion about the several technology companies which recently reported their latest quarterly performance, Guy Adami, Brian Kelly and Tim Seymour all explain why they think Microsoft Corporation (NASDAQ:MSFT)’s stock is not an ideal investment at the moment.
Adami reminds his colleagues in the segment that Microsoft Corporation (NASDAQ:MSFT)’s stock went from $48 to $42 in January. The stock has then traded back up to $45 per share which is a 15% correction, he says, but he thinks it will stay at that level for the near future. Kelly appears to agree with his colleague.
“I would still peg it at $45 [per share]. People are still thinking that Windows 10 is going to be this huge upgrade. The whole reason XP was such a huge upgrade is they cut the support for [the previous versions of Windows] so you had to do it,” Kelly says.
On Thursday, Microsoft Corporation (NASDAQ:MSFT) reported an earnings per share of $0.62, a beat of the $0.51 earnings per share consensus, according to data from Yahoo Finance. Revenue was reported to be $21.73 billion, more than the $21.06 billion analysts expected. The bottom line of the company was $4.98 billion.
Top line for the technology giant grew 6% year-over-year, but bottom line sank 12% year-over-year. Nonetheless, the firm reported $190 million in cost due to the integration of the Nokia business.
These figures, however, are not enough to convince the Fast Money traders. Tim Seymour is just as skeptical about the stock as his colleagues.
“How long will the shift to the cloud take? The macro headwinds are still macro headwinds for these guys,” Seymour says.
In other news, Microsoft CEO Satya Nadella was one of the highest-paid chief executives last year. Many people credit the positive turnaround at the company to the executive’s strategy, but it appears some industry observers are still not buying the Silicon Valley icon’s story.
Jean-Marie Eveillard’s First Eagle Investment Management owned about 36.23 million Microsoft Corporation (NASDAQ:MSFT) shares by the end of the last quarter of 2014.
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