Summary:
- MSFT reduced their forecasts.
- Raising prices in the international markets vs suffering falls in dollar-based-revenue.
Microsoft chooses to suffer dollar-based-losses
After updating their financial guidance for their fourth quarter Microsoft (MSFT) shares lost almost 0.1% of their value during Thursday's trading session. The tech giant announced that they would need to reduce its expectations for the fourth quarter due to changing foreign exchange rates, an issue that could become more common in affecting many companies going forward.
The blame is on the US Dollar strengthening against many major currencies, which is affecting the cost of doing business abroad. The strong US dollar calls for Microsoft to make a decision between raising prices in the international markets or suffering falls in dollar-based-revenue. Microsoft has apparently chosen to suffer losses domestically, causing their forecasts to change.
MSFT Price Chart
Sources: finance.yahoo.com, fool.com
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