Microsoft's latest earnings report scared many investors—its stock is down nearly 10 percent Tuesday morning—and analysts are arguing over what that means for the company.
One Nomura Securities analyst believes the company's best days might be over.
Rick Sherlund told CNBC's "Squawk on the Street" on Tuesday the Seattle-based tech giant has lost its momentum from last year. "They've had a benefit of a great 16-month expansion, and last year you had the migration from the [older] Windows XP, where they ended support, to a newer version of Windows," he said. "You had a tailwind as you're transitioning into the cloud. You had this benefit that's now dissipating, and no one was sure just how much of a benefit that was versus underlying PC demand."
So far in 2015, Microsoft's stock is down 9 percent, after rising 24 percent last year.
Sherlund said that falling sales of Microsoft products also hindered the company in its latest earnings report. "When you looked under the covers of the December quarter, you realized that while Windows was really down 13 percent, Office was down 13 percent for commercial and 25 [percent] for consumers, it kind of took your breath away," he said. "Then you realize the really tough comparisons are coming up in March and June, so as we say, the honeymoon is over."
The recent volatility in the foreign exchange markets has also crippled the company's stock, despite having hedged against it. "Because of the extraordinary move, I guess you just can't hedge for all of that," he said.
Nevertheless, another analyst believes the company can rebound.