Microsoft Corp. cut its guidance due to a headwind that's been a dominant talking point for tech companies reporting earnings of late: The strong dollar is making business more expensive. Read More...
Motley Fool
Is Microsoft Stock in Trouble After Cutting Guidance?
Microsoft (NASDAQ: MSFT) shares fell on Thursday after the software giant updated its financial guidance for its fiscal fourth quarter ending June 30. Microsoft based its warning on changes in foreign exchange rates between the beginning of the quarter and the end of May. In particular, as the U.S. dollar has strengthened against major foreign currencies, companies that do considerable amounts of business abroad face the difficult choice of either raising prices in international markets or suffering declines in dollar-based revenue and profits. Microsoft has apparently chosen the latter course, and investors need to consider the ramifications not just for the software company, but for every business in a similar situation.
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