Ahead of the Windows 8 launch, Barclays Capital cut its price target to $34 from $36. Barclays did maintain its equal weight rating on the stock though. Other analysts are keeping their rating the same for right now as they wait and see how the Windows 8 launch performs. Many are calling this the biggest product refresh in Microsoft’s history.
Yesterday, Microsoft reported earnings and saw a more than 20% drop in profit due to a weakening PC market. Tablets have really taken a big piece of the PC market and Microsoft is fighting back with its upcoming release of its Surface tablet.
Barclays said it was expecting the weakness in the PC business, but was surprised by the performance of the Office business and server and tools division. Microsoft is hoping that its tablet friendly Windows 8 will break its heavy dependence on PC sales.
Microsoft is trading down 2.37% after its earnings at $28.79.