Satya Nadella, CEO, Microsoft
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Investors should steer clear of Microsoft because of worse-than-expected PC sales, according to a Jefferies analyst, who reiterated an underperform rating on the tech giant.
"The [PC] forecasts have trended lower over time and any hope for an expected recovery now comes off a base that is lower than prior forecasted troughs. So while the PC industry may be waiting for 'tomorrow,' we remain skeptical that this will be the final downward revision," Jefferies' John DiFucci wrote in a note to clients Monday.
The firm cited Gartner's new forecast which brought down PC unit expectations to a 7.3 percent year-over-year decline in 2016 versus the prior estimate for a 1.5 percent drop.
