NEW YORK (TheStreet) -- Microsoft (MSFT) - Get Report stock is down by 1.04% to $43.41 in mid-morning trading on Thursday, after the company announced multiple partnerships with Chinese companies.

The company's Chinese partner 21Vianet Group (VNET), a cloud service operator, will create a joint venture with Tsinghua Unigroup, a state-backed chip manufacturer, to sell cloud products to state-owned operations, The Wall Street Journal reports.

Microsoft will also partner with China Electronics Technology Group to offer the Windows 10 operating system to government institutions and state-owned enterprises, the company said in statement.

Redmond, Wash.-based Microsoft will provide both ventures the necessary support and training. Financial terms were not disclosed.

Additionally, Baidu (BIDU) will become the home page and search engine for Microsoft's Edge browser in China.

In China, more than 92% of web users choose Baidu as their search engine, The Journal noted, citing the China Internet Network Information Center.

Separately, TheStreet Ratings team rates MICROSOFT CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate MICROSOFT CORP (MSFT) a BUY. This is driven by a few notable strengths, 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, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The gross profit margin for MICROSOFT CORP is currently very high, coming in at 73.06%. Regardless of MSFT's high profit margin, it has managed to decrease from the same period last year.
  • Despite currently having a low debt-to-equity ratio of 0.44, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that MSFT's debt-to-equity ratio is mixed in its results, the company's quick ratio of 2.30 is high and demonstrates strong liquidity.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 10.7%. Since the same quarter one year prior, revenues slightly dropped by 3.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • MICROSOFT CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, MICROSOFT CORP reported lower earnings of $1.46 versus $2.63 in the prior year. This year, the market expects an improvement in earnings ($2.69 versus $1.46).
  • You can view the full analysis from the report here: MSFT