Microsoft (MSFT) Stock Struggling Despite Windows 10 Promo, Xbox One S Launch Date
NEW YORK (TheStreet) -- Shares of Microsoft (MSFT) - Get Report are down 0.90% to $53.47 in early-afternoon trading, even though the technology giant is offering a Windows 10 promotion and announced a launch date for one of its new Xbox models.
The Windows 10 announcement comes as Microsoft works to increase its number of users on Windows 10. If a user signs up for the free upgrade before it expires on July 29, and the company is unable to complete the upgrade by the end of the day, then the user will be given a free 15-inch Dell Inspiron notebook.
Microsoft has already announced that it will not meet its target of 1 billion active Windows 10 users by June 2018.
"We're pleased with our progress to date, but due to the focusing of our phone hardware business, it will take longer than FY18 for us to reach our goal of 1 billion monthly active devices," Yusuf Mehdi VP of Windows and Devices Group, said in the announcement.
Additionally, Microsoft announced on Monday that it would launch one of its three Xbox One S models on August 2 for $400, with pre-orders available now.
The company needed to get one of the models on the market because the original Xbox One console "lags behind" Sony's (SNE) PlayStation 4 in sales and capability, reports the Wall Street Journal.
Microsoft is expected to report a year-over-year drop in earnings per share and revenue after today's market close.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate MICROSOFT CORP as a Buy with a ratings score of B+. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations, solid stock price performance, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
You can view the full analysis from the report here: MSFT
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