Free Republic

Late Wednesday, Microsoft (ticker: MSFT) reported financial results that handily beat Wall Street expectations. The company posted adjusted fiscal second-quarter earnings per share of $1.51, above the $1.32 Wall Street consensus. Revenue of $36.9 billion beat estimates of $35.7 billion. On Thursday, Bernstein analyst Mark Moerdler reaffirmed his Outperform rating for Microsoft shares, citing the company’s stellar earnings report. He also raised his price target for the stock to $203 from $174. “This was again another strong quarter as Microsoft continues to deliver Commercial Cloud growth as well as growth in numerous other areas,” he wrote. “The cloud story continues...

At first glance, things could not be going worse for Microsoft. Its long-dreaded nightmare scenario is playing out. The PC industry as we've known it is collapsing. PC sales fell 14% in the first quarter, according to IDC, the worst ever drop in history. Microsoft's new Windows 8 operating system is accelerating the collapse, says IDC. The new tile-interface is scaring consumers. Microsoft is scrambling to fix Windows 8 to address these concerns. And even if Microsoft fixes Windows 8, it could be too late. Its biggest rivals — Apple and Google — have taken complete control of the next...