MF: $MSFT Issues Stern Warning to Investors…

Microsoft (MSFT -0.09%) shares are under pressure on Thursday after the software giant lowered expectations for the current quarter. It is set to report these results in July.

Microsoft has a fortress balance sheet, and this is likely just a small blip in what continues to be an impressive growth story. But the reason behind the warning is likely to ripple through a wide number of companies during the second quarter. Microsoft is sounding the alarm that a strong U.S. dollar is going to impact results.

This is old news. Microsoft already advised managers to scale back hiring in anticipation of slowing sales.

Strong dollar? Slower sales in Ukraine or Russia? Doubtful. They are well known users of pirated software. Not big Microsoft customers.

More likely slower sales of PC vs rich comps during Covid and working from home.

Game machines seems promising. Azure remains the star of the moment.