The stock is still shaky after the blow received due to disappointing earnings. It looks weak, and may remain subdued for some time. The good part is that the valuations have become even more attractive after the 12% shave off. Analysts have a consensus target of around $34 for Microsoft, and the stock will be reasonably valued even that price. There are other analysts with much higher price targets, but those may be pruned soon in light of the results. The negative part is that there are doubts about the future pace of growth. Declining PC sales is a major worry, and it remains to be seen how the other products / cloud services etc. are going to make up for the void. There are indications that the future may not be that bad. Furthermore, all companies, whether Google (GOOG), Facebook (FB) or Yahoo (YHOO) etc. are focusing strongly on adjusting to the transition of the users from PCs to mobile devices. Selling ads on mobile devices or selling software for mobile, all efforts will require some learning. It will also impact the companies financially due to factors like lower ad rates on mobiles. The Online Services Division remains a worry as it has continuously been in the red. Google remains the frontrunner by a huge margin in the search engine sphere, and the social media space faces competition from big and small, global and regional players. Concepts like social media sponsorship are attracting advertisers, with companies like IZEA (IZEA) attempting to leverage the potential. It is important for Microsoft to get it right during this transition phase, and innovation remains the key to success. As stated by the management, there is surely a need for "compelling innovative tools and high worth experiences from the company to bolster sales".