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Microsoft Corporation (MSFT) Faces Problems But Still Beats The Industry Average

Microsoft Corporation (NASDAQ:MSFT)’s stock price is down almost 1%, to approximately $47.1, following the announcement of delaying the Xbox One game console launch in China. There haven’t been disclosed any reasons behind the decision, and no date of future release has been provided, according to TheStreet.

Microsoft Corporation (NASDAQ:MSFT)

The firm might face some difficulties deriving from its inability to deliver the console in time, however it will not be severely affected by the occurrence. Microsoft Corporation (NASDAQ:MSFT) reported a very strong fourth quarter report, which delighted many investors and analysts.

Microsoft Corporation (NASDAQ:MSFT)’s in the A- ratings category of TheStreet Ratings Team, which outlined a couple of facts that might eventually cause a rebound in the tech company’s valuation quite soon. It had a revenue growth of 15.6%, up to $23.38 billion, over the same quarter 2013, about 4.2% above the industry average. Then, the debt-to-equity ratio is 0.25, significantly low, showing proficiency in dealing with debt levels management. The company’s quick ratio is 2.31, which demonstrates its ability to cover short-term liabilities in full.

Microsoft Corporation (NASDAQ:MSFT) has presented also an increase in its cash flow of approximately 61.7%, up to $9,514 million. The industry’s average for the same statistic is 41.71%, which further demonstrates the Redmond, Washington-based titan’s grandeur. The stock price grew about 26% starting with the first trading day of this year, and despite it got a lot higher than most of its peers, it’s expected to grow bigger.

Besides all the facts mentioned above, Microsoft Corporation (NASDAQ:MSFT) completed earlier this year the acquisition of practically all of the Nokia Corporation (ADR) (NYSE:NOK)’s devices and services. This new branch contributed some $1.99 billion to the revenues, although it negatively influenced incomes. About $692 million were needed to cover the losses of operating income, but it is not expected to have a critical overall effect as growth will not bypass this segment. The Devices and Consumer, including mobile, increased by 42%, or $2.98, billion and it is expected to continue its ascending trend.

Disclosure: none

 

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