Microsoft Cut to Sell at Citi Following Earnings

Following yesterday’s disappointing earnings report, Citi cut Microsoft Corporation MSFT to Sell from Neutral with a price target of $38. The price target represents a $12, or 24 percent, decline from Citi’s prior target.

Microsoft reported earnings in line with expectations ($0.71 per share) on slightly higher revenue ($26.5 billion vs. $26.3 billion). The company’s commercial cloud division was a shining star, while Windows revenues were a severe drag.

Shares of Microsoft are selling off sharply in premarket trading, down 8.5 percent to $43 at present.