Microsoft Corporation (NASDAQ:MSFT) shares are still getting hammered a day after the company’s weak second quarter earnings report, but not all investors or analysts have lost hope. Analysts at Goldman Sachs slashed their price target for the stock to $28, and Microsoft shares fell as much as 12 percent. However, some investors do still see value in the company.

Microsoft

Institutional investors may keep holding Microsoft shares

USA Today’s Byron Acohido reports that many investors, especially institutional ones, will continue holding onto their shares of Microsoft Corporation (NASDAQ:MSFT). Many analysts believe that it’s still too early to know if the recovery efforts being made by Chief Executive Officer Steve Ballmer are working.

During the second quarter of the year, he discounted the company’s Surface RT tablets, resulting in a $900 million write-down. Also a major reorganization of the company was announced last week, a move that many analysts see as a positive for the software giant in the long run.

Microsoft’s future partially depends on Windows 8

Also the company recently released its Windows 8.1 update, so investors will likely be trying to gauge how well the update addressed the concerns of consumers. If adoption of the new operating system increases, then new PCs and notebook sales could increase as well, in the view of some analysts.

Another possible positive for Microsoft will be the release of Intel Corporation (NASDAQ:INTC)’s Haswell processors. One of Microsoft Corporation (NASDAQ:MSFT)’s top executives in Europ told one blogger than Windows 8 hardware manufacturers are about 18 months behind where the company would like them to be. The Haswell processors will be made to support some of the most important features of Windows 8 like touch and better battery life, which could provide a boost to Microsoft.

UBS likes Microsoft

It’s important to note also that Microsoft Corporation (NASDAQ:MSFT) still has its hands in several different areas of the tech sector, which means its fate depends on much more than just Windows 8. UBS analysts Brent Thill and Reid Menge issued a report to investors noting strong demand for the company’s enterprise and cloud solutions as big positives for the company. Also 7 cents of the earnings per share miss was because of the charge related to the discount of the Surface RT tablet.

The company lowered its fiscal 2014 operating expenditures guidance to between $31.3 and $31.9 billion, compared to the $31.6 to $32.2 billion previously, indicating that it is taking steps to cut costs. Microsoft also recorded 10 percent growth in business Office subscriptions and volume licensing and 16 percent growth in unearned revenue in Server and Tools.

UBS analysts maintained their Buy rating and $40 per share price target on Microsoft Corporation (NASDAQ:MSFT), even in the wake of the most recent quarterly report. They see long term continued value in the software giant.

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