J.P. Morgan Looks At MSFT's ‘Elephant In The Room'

J.P. Morgan, in its report discussing MarQ results on Microsoft MSFT, highlighted the company's elephant in the room: tablets. Says J.P. Morgan, in the report, “When describing the PC market and the relative weakness of consumer unit sales, management noted several reasons, but they did not even mention the word “tablets”, which we believe has had a meaningful impact on PC unit sales and will likely have a more material impact in the future. PC unit sales drive the Windows and Office businesses, which have historically driven 80-90% of MSFT's profit.” J.P. Morgan continues to rate MSFT at Neutral and maintains a $30 price target on the stock. MSFT closed yesterday at $26.71.