SAN FRANCISCO (MarketWatch) - Shares of Microsoft Corp. MSFT, -0.76% fell 1.5% to $26.30 on Thursday after Morgan Stanley downgraded the stock to equal weight citing the ongoing weakness of the personal computer market and the "disappointing" launch of Windows 8. "PCs are not likely to improve near term," analyst Adam Holt said in a note. "We don't like downgrading a stock this cheap, but slow growth limits upside and we move to the sidelines until growth re-accelerates," he added. Shares of Microsoft have shed 9% in the last three months.