Microsoft’s stocks hit a new low this Friday after the unimpressive quarterly earnings reported by the company spokesmen. Microsoft announced a write-off of almost $1 billion (USD) for all units that remained unsold, particularly the Surface RT tablets. Critics have already started speculating that Microsoft is heading towards a complete shutdown and that the tech giant will slowly be a victim of obsolete technology and slow growth.
In the year’s quarter, net income of Microsoft plummeted by almost a third. The 2013 fiscal year for Microsoft ended with $77 billion in liquid cash. Keeping aside the debt of the tech company, Microsoft still has around $60 billion in its cash reserves.
Experts claim that there is no reason to panic as Microsoft stocks have been closing at higher points for many months. However, the warning signals are clearly evident. Dipping sales of the PC computers, harsh criticism for its Windows 8 operating system, the public relations debacle that surrounded the launch of the Xbox One and the disappointing reviews and sales figures of the Surface RT tablets have put Microsoft on a back foot. Its investors are contemplating whether this is the right time to pull out. Even if the tech giant does not file for bankruptcy, it is surely sailing in rough weather as it faces tough challenges in the likely future.