Bank of America, a multinational banking and financial services company, has downgraded their stock in Microsoft and they are blaming a "lack of momentum" as the reason. In fact, Bank of America believes Windows 8 is challenging their optimism.
According to a Bank of America analyst, Kash Ragan, Microsoft's Windows 8 operating system, which has been available for just about six months now, lacks momentum and is challenging their optimism. Ragan didn't provide much details or commentary on the matter.
"We were hoping that MSFT would make a bold foray with Win 8 into smartphones and tablets. Conventional product cycle wisdom dictates that the stock should peak before a Win launch (it hit $31.45 in Sept '12 before Win 8), but we remained optimistic because the limited availability of touch-based devices impaired an objective assessment of Win 8. Now, six months post launch, despite more available touch-based devices, Win 8 lacks momentum, challenging our optimism," Ragan stated.
Bank of America has lowered its rating on Microsoft from "Buy" to "Neutral" and this change is made after nearly five years of the banking company held a rating of "Buy" on Microsoft. Perhaps Microsoft's upcoming Windows Blue update will change their mind!