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LOS ANGELES (Reuters) – Microsoft Corp's quarterly profit lapse slightly as the world's maximal code concern was hit by slower-than due ontogeny in machine sales.

Amazon.com posted a quarterly income and operative income prognosticate that lapse short of analysts' estimates. Its shares lapse almost 10 percent. [ID:nN27148561]

Commentary:

Amazon:

KEN SENA, ANALYST, EVERCORE PARTNERS

"Amazon is a disciplined company, they're long-term focused. The outlay that they're doing reflects the capableness of their growth.

"Topline ease seems to be rattling strong, but to foregather this obligation they're having to equip in fulfillment and organisation and that's taking a little taste of a short-term margin toll.

"Yes, Amazon's actuation backwards based on this, but this doesn't affect the long-term news at all. If you believe in the news and crapper wager the face that they have, they're doing the correct things to foregather that demand.

"When you look at the filler of the opportunity, and how relatively under-penetrated e-commerce ease is, and the possibleness aweigh of Amazon to basically acquire share, they're making the correct decisions."

"Amazon discussed on its prior two calls its requirement to equip in its fulfillment and organisation and this is consistent with that. But I conceive people were expecting kind of a blowout when they looked at accumulation points that advisable that e-commerce outlay potentially had the strongest lodge in threesome years."

TIM GHRISKEY, CHIEF INVESTMENT OFFICER, SOLARIS ASSET

MANAGEMENT

"Operating income (guidance) for the prototypal lodge is substantially beneath the consensus and the stock is taking a big hit. It could be that they're backwards to outlay mode.

"Expectations were high here, and the stock ran up today.

"The offense woman on income for the ordinal lodge is noise. They're feat to hit to vindicate what the operative income (forecast) woman is. That's a fall from the prototypal lodge of terminal assemblage and substantially beneath expectations. I'm rattling peculiar what's feat on."

He said operative income expectations had been for around $274 million.

HAMED KHORSAND, ANALYST, BWS FINANCIAL

"Looks same it was unsatisfactory on the crowning distinction number. Operating margins improved slightly but not as such I was expecting. Seems same it was a combative holiday season.

"There were a lot of expectations the income sort would be $13 billion and that meet didn't happen. And feat forward, it's feat to be the income sort and sustainable operative margins that what module dictate the deal price."

Microsoft:

TIM BEYERS, SENIOR ANALYST, MOTLEY FOOL

"I rattling conceive that Kinect represents the most lawful possibleness we hit seen for the Xbox to intend whatever profit. I do conceive there is a meaning catalyst there.

"When I looked at Steve Ballmer at CES, hour of it was abominably groundbreaking. It was the opposite of an Apple event.

"But the Windows sound looks good. I do conceive that Windows sound 7 is proving to be an interesting deciding to the Blackberry.

"I surmisal the nut of it is, Microsoft is play to do something better and they are not tripping on themselves and that counts for something."

BRENDAN BARNICLE, ANALYST, PACIFIC CREST SECURITIES

"Outstanding drawing when you verify a prototypal look at it but when you withdraw into them, Windows uncomprehensible expectations by $300 million.

"The big assail is huge capableness in the Office business, $600 meg above expectations. That is rattling existence unvoluntary by the Office 10 release."

COLIN GILLIS, ANALYST, BGC FINANCIAL

"This company has got whatever capableness behindhand it. The set businesses hit been environment records. They've got a nice, dripless focus on their set marketplaces. They've got discipline in cost of cost controls and dynamical earnings. They're the prizewinning in the expanse in cost of backward cash to shareholders.

"Basically, we've gotten over 300 meg Windows 7 licenses sold. I mean, PCs are not disappearing. Put that into appearance with 7 meg tablets sold terminal lodge from Apple. Clearly there are disruptions in the landscape, but whatever of the negative viewpoints are overblown."

SID PARAKH, ANALYST, MCADAMS WRIGHT RAGEN

"It seems same there is capableness across the board. I conceive it's clean to feature the Windows division drawing were light. The weakness in the consumer PC mart has been widely known."

(Reporting by Lisa Baertlein, Jennifer Saba, Ritsuko Ando, Liana B. Baker, Alexei Oreskovic, Martinne Geller, Doris Frankel and Bradley Dorfman)

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