Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Microsoft (NASDAQ: MSFT ) got totally crushed today, down by 12% at the low, after the software giant reported disappointing earnings last night.
So what: Revenue in the quarter came in at $19.9 billion, which translated into earnings per share of $0.59. Both figures were shy of Street forecasts, but perhaps more troubling to investors was a large inventory charge related to Microsoft's Surface RT tablets.
Now what: Microsoft is taking a $900 million charge over its first foray into tablet hardware, which adversely affected the bottom line by $0.07. CFO Amy Hood confirmed that the write-down was partially related to the $150 price cut that was implemented this month. Meanwhile, the struggling PC market continues to take its toll on Microsoft's core businesses as its transition to a devices-and-services company remains uncertain.
Interested in more info on Microsoft? Add it to your watchlist by clicking here.
It's incredible to think just how much of our digital and technological lives are almost entirely shaped and molded by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.