Report Suggests Decline in Microsoft’s Windows 8 Software Sales (MSFT)
A report released on Thursday suggests that software company, Microsoft Corporation(MSFT) may be taking a hit with their Windows 8 software, having a direct affect on ODD manufacturers.
Digitimes reported that as a result of declined sales of the software, many manufacturers in the optical disk drive (ODD) business will see negative effects in the next quarter.
The decline in PC sales are expected to reduce purchases on ODD equipment by 5-10% in the first quarter. The report also stated that although Japanese manufacturers are estimating a flat quarter, manufacturers in US, China, and Taiwan are being conservative with their production.
However, sources estimate that Intel(INTC) will see improved earnings in the second half of 2013.
Microsoft shares were mostly flat during premarket trading Thursday. The stock is up 3.5% YTD.
The Bottom Line
Shares of Microsoft (MSFT) have a 3.43% dividend yield, based on last night’s closing stock price of $26.86. The stock has technical support in the $24-$26 price area. If the shares can firm up, we see overhead resistance around the $28-$29 price levels.
Microsoft Corporation(MSFT) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.
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