Research archive for MSFT

But tech stocks were the focus afterhours, results from Microsoft. Which I thought looked very good, considering that people have been talking about a struggling PC business. I remember seeing an interview with Michael Dell from err.... Dell Inc. last week who suggested that personal computers were not where it was at for him and his company. And that personal computers were less than ten percent of all of the hardware market, which tops three trillion Dollars worth of annual sales.

Mister Softee, also known as Microsoft unveiled Windows 8 last evening. Don't take my analysis of it, rather have a look at the folks who have actually had the device with the operating system in their hands. Check it out ---> Previewing The Future: Hands On With Windows 8. That is from the fellows over at Tech Crunch, this is another good view from PC World: Windows 8 Also Has Tools for Power Users. My sense is that it is a good product. But there are questions as there were when the iPad was first released. I suspect that ultimately it is all about the applications that are available to the users, to customize their tablets for their specific use. Microsoft have a kind of patchy record letting people into the circle. My two cents worth, I hope it works for them and their shareholders.

Microsoft came out with their fourth quarterly results yesterday which looked impressive but showed a shift in the business somewhat which I guess was expected. They managed to grow profits by 30% with quarterly net income coming in at $5.9bn. Revenue rose 8% from last year to $17.37bn. Where these revenues came from is what interested me and how each sector in this company acts as a proxy for the general market in some aspect because it is such a big and dominant player.

Microsoft was the key story on the day really, acquiring Skype in the biggest deal in their history. Is this a good idea? Perhaps. Time will tell, but Skype has been owned by multiple parties, including the fellows from eBay, who this is a positive for. 8.5 billion Dollars for a free calling service, I suspect that this might have a lot to do with the Windows Phone. Skype is going to be the platform and you will use your data connection to call. Yip, it has everything to do with that, don't be confused for a second. But could it ever be a completely paid for thing? I wouldn't pay even a small rate to call via my computer. I wonder how it is going to work?

Also making news, Microsoft afterhours with numbers. And as expected, Windows dominance is starting to get eaten up by the Tablet market, in particular the iPad, which of course has a completely different OS to the normal run of the mill PC user. Not an awful decline, but a decline nevertheless in the PC space. Business of course will continue to invest in new hardware with Microsoft software, so I guess until Apple enter that space (probably not for a long time), then the likes of SAP, Oracle and Microsoft will continue to dominate over there. Afterhours the stock is currently trading down one and a half percent.

Microsoft with results out after hours. Nerds. Awesome results I must be honest, there were some concerns going into these numbers, but those were shelved. Office and Windows 7 OS (around 240 million licences sold since the launch last year) were the standouts, there were of course questions posed as to when the new products will start contributing heavily. Google and Apple are the obvious comparisons. Sales of 16.2 billion Dollars for the quarter, that was an increase of 25 percent. 62 cents per share worth of earning, heck the stock looks cheap at 27 bucks, up nearly three percent in the pre market. A trailing price to earnings multiple of 12 and a half. And a yield of around two and a half percent.

The rumour that Microsoft are going to be partnering with Adobe has gone viral. The New York Times reported that Microsoft had met with Adobe, the main okes what count met in San Francisco. Other sources say that this is complete nonsense. Here is the story: What Did Microsoft and Adobe Chiefs Talk About? Clearly if true, not such a well kept secret. These folks who are familiar with the situation, they are EVERYWHERE!!! As you can see from the article, both companies say very little.