Microsoft shares fell by 2% this morning before partially recovering after the company reduced its revenue guidance for the current quarter, citing unfavorable foreign exchange rates.
It’s the latest example of the turbulent economy and uncertain market impacting companies large and small. Microsoft recently boosted compensation to retain employees and slowed hiring in its Windows and Office divisions.
The revised guidance puts Microsoft’s revenue between $51.94 billion and $52.74 billion for its fourth fiscal quarter, ending June 30, compared with a range of $52.4 billion to $53.2 billion previously.
Microsoft also reduced its guidance range for profits to $16.85 billion to $17.43 billion, down from $17.10 billion to $17.67 billion previously.
As of publication time, Microsoft shares are trading around $271, down a half-point. The stock recovered some of the early losses after analysts said the adjustment reflected broader economic trends, and the strong U.S. dollar, and not underlying issues in the company’s business.
Salesforce made a similar adjustment earlier this week.
