MSFT Rising With Markets Markets are staging a rebound with broad-based buying as fears are quelled with the ongoing credit crisis in Europe and as
gold bounces back after its historical 3-day sell off. Shares of MSFT are up as well, however weaker than the remainder of technology. Upcoming catalysts include
Windows 8 and entrance into the tablet market;
Windows Phone 7 / Mango rollout and adoption with hardware partner
Nokia; strides against current market leaders in cloud computing; making money in the online business, including integration of
Skype and improving the search / display business; and continued evolution of
Kinect and next generation
Xbox console. The stock currently trades at
7.2x Enterprise Value / TTM Free Cash Flow.
Microsoft Needs A New Business Model For Windows 8 Tablets (SplatF) Microsoft’s Windows division is still a monster. But as the industry shifts toward tablets, the story gets less certain for Microsoft. With different economics and pricing for tablets than PCs, how will it build a meaningful growth business? It may need to figure out a new model. How?
- Selling integrated hardware and software
- Office add-on revenue
- App store revenue
- Cloud services
- Advertising
- Incentivizing Windows tablet consumers to buy Windows PCs (how?)
Sounds as though they need to be more Apple-like.
Read » Windows 8 Will Reboot Microsoft Stock (Seeking Alpha) With the macroeconomic sentiment negative, it is understandable why Microsoft would be sold off along with other stocks. Yet, bearish investors are ignoring the strength of the dual strength of the product refresh cycle with Microsoft. And the reasons to buy the stock comes from the appealing enhancements in Windows 8. The new operating system will ship in 2012, and is the release that will reboot shares to the upside. The coincidental release of the desktop operating system alongside
Nokia Windows Phone 7 will be positive for Microsoft shareholders.
Read » Is Ballmer Microsoft's George Dubya? (Fortune) One person seems to think so. "Steve Ballmer has done to Microsoft what George W. Bush did to the United States." Blogs are having a field day mining the stream of comments left on
Mini-Microsoft after Friday's annual employee meeting. The tone and volume of the remarks made after this year's gathering suggest that morale in Redmond has hit a new low. They make chilling reading for Microsoft investors. It's a
far cry from the optimism presented on Friday.
Read » EU Should Note Skype Acquisition As Possible Antitrust (Reuters) European Union regulators now vetting Microsoft's bid to buy
Skype should block any anti-competitive bundling of Microsoft's Windows software with the Internet
phone service, according to a competitor. Microsoft's $8.5 billion acquisition of
Skype will enable Windows Phones to compete directly with
Google and
Apple smartphones which already feature video chat. The deal was approved by U.S. antitrust regulators in June.
Read » 
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