Thursday, January 22, 2009
Microsoft was slammed today. Its shares fell 12% today after the company announced it missed analyst's estimates. Microsoft's profit was down to 4.17 billion dollars, from 4.71 billion dollars a year ago. Microsoft also recorded revenues of $16.63 billion vs. expectations of $17.08 billion. Microsoft also announced it will not give revenue estimates for 2009, a sign of management's lack of confidence in their business outlook. On top of that, the company announced it will cut 5,000 jobs. Software engineers were once considered to be in high demand, but the fact that unemployment has started to spread into the software industry is a sign that unemployment is going to continue to rise. Microsoft's weak earnings reiterates my earlier post of waiting to make investments until the bulk of companies have released their earning report. I know Google posted better than expected earnings today, however they are a rare case and should not be a sign to dive into the market yet.