Forbes on MSFT
Ouch!
Even though the Redmond, Wash.-based software behemoth is getting closer to finally releasing its new operating system, known as Windows Vista, its growth businesses--like the Xbox video game console and its MSN Internet unit--remain unprofitable. Some investors now view Microsoft (nasdaq: MSFT - news - people )--once seen as the technology-growth play--as little more than a proxy for the entire market.
And you think I'm harsh :-)
American Century’s Telford, for one, is holding off buying shares. "We look for positive improvement and positive change," he says, "and we haven't seen it yet from them."
Although it's hard to disagree with that one. Or this one:
The company’s shares have lagged the S&P 500 over both the last three- and five-year periods. In fact, Microsoft’s stock price has compounded at a measly 1% annually since 2001.
1% annually since 2001? Hmmm, I wonder how that compares with executive compensation over that timeframe? I'll go out on a limb here, and guess "not favorably"...
posted by MSFTextrememakeover at
3:18 PM
4 Comments:
What about the 17% growth in S&T? Headed for 3B profit on 10B revenue this year? A business that didn't exist 10 years ago (you would have been laughed out of the room if you'd suggested using Microsoft software in a mission-critical datacenter...not so anymore). And, a business that ALONE is bigger and more profitable than Apple or Google as ENTIRE COMPANIES. Sure, MSN sucks ass and has no excuse for sucking ass for 10+ years--everybody in that division should have been fired and they should have just bought Yahoo with the savings--but Xbox is actually turning the corner, losses cut in half from last year as revenues almost doubled, and SNE will be fucked out of existence in a year. This guy is writing last year's article. Typical Forbes idiocy.
By
Anonymous, at 4:23 PM
Did you notice that the cash flow declined and capex almost doubled? What does this mean for the stock?
By
Anonymous, at 10:23 PM
What about the 17% growth in S&T? Headed for 3B profit on 10B revenue this year? A business that didn't exist 10 years ago
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Sir, you dont understand history. We started investment in Windows NT in 1988 and LanMan in 1991.
MSN is a relative newcomer. Sir, it is the management that messed up MSN.
By
Anonymous, at 5:06 PM
>> Did you notice that the cash flow declined and capex almost doubled? What does this mean for the stock?
Sir, these are interrelated.
Investment in infrastructure drains cash available for use. The great thing about CapEx, though, is that any well-meaning corporation will anticipate a Return-On-Investment (ROI) greater than the opportunity cost of the money invested.
When you think Microsoft investments, think about new buildings in Washington, and new campuses the world over. Also, think about the massive web infrastructure investments in power and data centers. We're finally going toe-to-toe to fight Google's hegemony.
By
Anonymous, at 7:24 PM
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