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Microsoft stock slips after tech giant lowers earnings outlook

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Yahoo Finance Live anchors discuss why Microsoft stock is down today.

Video Transcript

- Welcome back to Yahoo Finance Live. Shares of Microsoft are under pressure in the premarket after the company updated its full year guidance. And so Brad, Wow, especially a day after we got some upbeat guidance from Salesforce, which is, of course, is a Microsoft competitor.

I would say just looking at this presentation that Microsoft put together via new filing, they lowered the bottom end of their earnings outlook by $0.04 and they trim the top end of their earnings outlook by $0.03. And they're blaming FX exchanges, which is not too different from what we just heard from HPE CFO Tarek Robbiati moments ago. Another tech company lowering their outlook because of FX headwinds.

- Yeah, this is for their fiscal fourth quarter. So in this year, particularly here through May what they're seeing right now is revenue. The guidance range previously was for $52.4 billion to $53.2 billion. Right now they're lowering that to a range of $51.9 billion, or if you round up 52. But the high end that's going to come in at around 52.74 billion.

So when we think about this in the net income perspective, yet you broke down exactly what they're looking for. On the net income side that would be closer to 16.85 and then top end 17.43.

And I think for more what we're seeing on Microsoft this is impacting the NASDAQ composite. This is impacting more broadly this move that we're seeing in the pre-market for some of the major averages moving lower right now.

- Yeah, now you would have to think as more companies present at various investment banks in the coming weeks you will see more guide downs because of FX various economic pressures. But again, we are watching that opening bell on Wall Street after that Microsoft warning.