Microsoft falls 9.25%

Discussion in 'Stock Market Forum' started by Onionman, Jan 27, 2015.

  1. Onionman

    Onionman Senior Investor

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    Microsoft too a bit of a battering in trading, with the shares falling 9.25%. Revenue numbers beat expectations but earnings only met expectations, suggesting some pressure on margins. But the results also showed weak sales of Windows.

    What's everyone's thoughts on the stock?
     
  2. turt

    turt Guest

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    I think it still has room to grow if Windows 10 is successful and they learn how to integrate their commercial product offerings. I have a business account and run a competing Google Apps for business account. While Microsoft has more powerful tools, the integration is a joke compared to Google. It's so bad that I almost shut it down instantly. Hopefully the new CEO fixes things...
     
  3. crimsonghost747

    crimsonghost747 Senior Investor

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    Microsoft has relied on a couple basic products, Windows and Office, to generate a huge part of their earnings. This worked well in the past, even when consumers rarely bought the new version of windows. It worked fine even when microsoft was pretty much kicked out of the smartphone race. I haven't read the quarterly report, but I heard that this time the drop is mainly because the corporate side of Win & office sales are slowing down. It's only logical, a lot of the big corporations need to cut spending and letting go off office in favour of open office will change very little when it comes to productivity.

    Already before this report microsoft has announced that Win 10 will be a free upgrade for those using Win 7 & 8. So they are obviously trying their best to keep their market share which has been shrinking constantly.
     
  4. petesede

    petesede Guest

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    It has been 10 years since Windows or MS Office had an upgrade that upgraded anything, they could only hold out their monopoly so long. More and more people are just finding no reason to upgrade. They also have a huge creativity issue, nobody graduating from college says ´I want to go work at Microsoft´.... they are getting middling employees now and the creative and brightest are going to other companies. ( Google is starting to have the same problem). Windows will stay a monopoly for another decade, but Office is doomed and there is nothing in the pipeline to get excited about.
     
  5. troutski

    troutski Guest

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    Everyone's holding out for Windows 10, which is getting early rave reviews from just about everyone. The company is creating what Windows 8 should have been, this coming from someone that actually liked Windows 8. The company could see a huge revenue boost even with Windows 10 being free for Windows 7,8, and RT users. A coinciding Surface Pro 4 release would help things along nicely, too. Microsoft could be ready to make a small comeback into relevancy.
     
  6. Onionman

    Onionman Senior Investor

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    I agree - they are a real gauge of "Old Tech" - i.e. a bellwether that is stuck in its ways and unable to innovate because of its scale and legacy programs. Windows is the one thing they can hang onto. They can forget about Surface and smartphones etc - they really aren't that appealing to most consumers.
     
  7. Peninha

    Peninha Senior Investor

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    Microsoft is losing the edge on new technologies, they are stuck in the past and have a hard time creating something really innovative, I guess that is why the price is dropping.
     
  8. Turbolag

    Turbolag Active Member

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    With this in mind, does that mean that we should avoid buying Microsoft stock? Meaning, that there probably won't be any upward movement, just lower prices and no chance of going back up?

    Or do we watch it, and as it gets lower buy it up with hopes of it going back up?
     
  9. forehandflick

    forehandflick Member

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    With the recent announcement of Windows 10 being a free download for owners of Windows 7 and 8, it doesn't surprise me in the least. Why should consumers pay for an operating system that's going to be obsolete in a month or two and have the next one be free? The free release of Windows 10 itself is showing weakness from Microsoft by letting consumers know that they'll do just about anything to get us on their new platform.
     
  10. crimsonghost747

    crimsonghost747 Senior Investor

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    That is up to you. If you see microsoft's business as declining, not being innovative etc. then of course you want to stay away from owning them. Or if you have strong views, even shorting their stock.

    If you think they can rebound, then this is a buying opportunity for you.
     

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