Microsoft Is Down 8% As The World Realizes The Windows Business Has Collapsed (And Probably Isn't Coming Back)

Microsoft is down 8% pre-market this morning.

The stock has been doing worse and worse since the company released earnings. Initial reaction to the release sent the stock down 2.5%. Then it was 5%, then 6% ... and now it's down 8%.

Microsoft's Windows business is finally feeling the effect of the collapse of the PC industry, and the failure of Windows 8 to slow the iPad.

The Windows division's operating income was down 55% on a year-over-year basis, which dragged down the company's EPS. It also took a $900 million charge on the Surface RT, its iPad-wannabe tablet.

After posting earnings, Microsoft CFO Amy Hood told Dina Bass at Bloomberg, "it will take a long time" for Microsoft to make enough off tablets to erase the losses in the traditional PC market.

Microsoft's enterprise businesses remain strong, but that's not enough to keep investors happy.