Msft beats streat estimate but came short of revenue of 22 billion$ by $100 millions (spit in a bucket). But look at which area is losing money and which is gaining. It loses in xbox which is an old machine and loses in business. But look at what is growing, Windows division is up 24% growth. Isn't this what msft is banking on? the New Windows 8 that has sold well and promise to revive all window base portables and laptops? We are only 2-3 months into its debut. We haven't even seen Surface Pro (W8 based) yet. Lenovo Yoga is selling at $1000/ea. Msft upped their W8 price to 200/copy. So, if you are banking on innovation, msft has 24% growth on software innovation that would allow collaboration of touchpads to laptops and other window based portables.
Another innovation is Xbox kinect (movement without joystikcs)-- this will replace current xbox that hasn't been doing well. Thus, three innovative projects on the way. Surface Pro expected to be release Feb 4th and Xbox Kinect this summer.
Good post! I think buying MSFT at these levels is a very good investment and we could easily see $30 after the all weak hands are gone. Excellent report and we didn't even rally to fall further. If we had rallied to $32 and now fall to $30 then it makes sense, but here we didn't rally all the bad news was already priced in. In addition we got better news, better EPS, and new products are in pipeline. Apple is almost dead until it comes up with new earnings. I wouldn't be surprised if money from AAPL come into MSFT during the next few weeks.
I don't quite get the bipolar reaction in the AH. But down on a good quarter, beating estimates?!!! The problem with investing in a stable company like msft and apple is that people expect too much. Buy something that is about to go BK, and hope for some savior-- that is when it really rally. Imagine if msft didn't beat the estimates, OMG !!!! No wonder this stock has not moved passed 35 in 12 years.