Microsoft shares fall 4% after warning of coronavirus hit to supply chain

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Microsoft shares fall 4% after warning of coronavirus hit to supply chain
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Shares of Microsoft Corp fell more than 4% on Thursday after the company warned ...

Microsoft said on Wednesday its supply chain was returning to normal operations at a slower pace than anticipated and its Windows and Surface computers had been more negatively impacted than expected.

“Finished good inventory levels matter. If Microsoft had not fully assembled and packaged Surface units in the channel, then the impact would be felt faster and more severely,” Morningstar analyst Dan Romanoff said in a mail. The global stock markets have also taken a hit as investors grew cautious of the impact of the virus on global supply chains. The Dow Jones Industrials indexSeveral Wall Street analysts expect other technology companies with heavy presence in China to soon come out with their own statements.

“Given there seems to be weakness in the PC supply chain, it would seem highly likely to me that we hear something from Intel,” Atlantic Equities analyst James Cordwell said in a mail. Andrew MacMillen, an analyst with Nucleus Research, said that PC makers such as Dell Technologies Inc (

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