Weak earnings report from Microsoft

Weak earnings report from Microsoft

The Dow tumbled 200 points.

I had to talk about Microsoft stock this week as it is one of the more talked about ones along with apple, and  Google. All three of these tech stocks had common themes with Apple and Google coming off the worst. The good thing is that investors are still bullish about the latter stocks.

As for Microsoft, the stock fell three percent and this negatively impacted the Dow as it is one of the giants of the index. Two other giants - McDonald's and General Electric - also had disappointing earnings reports.

Microsoft's net income has gone down 22 percent with PC sales falling and the European debt crisis affecting the Seattle, WA firm's global revenues.

The sales of the Xbox 360 as of late have been a disappointment for Microsoft and they need a new game console really badly. This makes the release of Windows 8 on Friday all the more important. Analysts have reduced their earnings forecast for Microsoft for next quarter and the success of Windows 8 will determine the trajectory of the company's stock price.

Another one to look out for is the Microsoft Surface tablet that Microsoft is banking on to regain lost market share. .

The Surface has become a necessity for Microsoft because Apple's iPad has penetrated the PC market that Microsoft has a hegemony in. Small businesses are increasingly using the safe and light iPads instead of the heavy, virus-prone PCs.

Microsoft can really make a comeback with Surface as its Windows OS and Microsoft Office software are so widely used in global commerce.