Is Microsoft Stock in Trouble After Cutting Guidance?

Is Microsoft Stock in Trouble After Cutting Guidance?

Shivam

Microsoft lowered its guidance for the current quarter.

This was due to adverse foreign exchange fluctuations.

Investors should not overreact in the case of Microsoft, but other companies may also experience similar negative impacts in the near future.

Microsoft already anticipated foreign currency to have a negative impact in its guidance for the current quarter back in early May.

In terms of raw numbers, those hits to the top and bottom lines seem substantial. Yet although investors shouldn't ignore them entirely, it's important to put them in perspective.

Foreign competitors will gain an advantage, but foreign exchange rates tend to swing upward and downward over time in a way that evens out over time.

Is Microsoft stock still a buy?

Is Microsoft stock still a buy?