MSFT's got a big problem either way: Declining Sales in the NOK acquisition it overpaid for... and if it shuts it completely, it has to admit BALMER's strategy to take on Apple and GOOG in Mobile HAS FAILED.
You're looking at it purely from a TECHNICAL CHARTS perspective... that it built a long base at PEs of 8 - 10, so now you think its worth PE of 17 (it will be at with its Earnings miss) based on forecasting rising chart to continue. But what if with its low growth and now declining earnings, its really only worth a PE of 10 that it was at in 2012, or maybe even 12 to 14 PE Ratio in reality?
MSFT's now at twice the PE it was at in 2011, yet if anything its PROSPECTS are WORSE TODAY. Its totally failed at Mobile Computing now, as evidenced by NOK acquisition disaster. MSFT is becoming a "has-been" in smartphones and tablets.
No, NOK will only be a DRAG on MSFT's earnings, until MSFT "gives up the ghost" that it can compete with GOOG/Samsung (gives away operating syst. software free, for ad revenues) on the low end, and APPLE on the high end. NOK will only be a drag on MSFT's earnings, until MSFT finally closes NOK down.
Agreed. I made mistake way the 2nd sentence is written. Correction: "Take away MSFT's added revenues from Acquistions (from NOK) and it had little organic revenues growth." OK, I left out earnings, effected by NOK on this re-write.
Its not just that NOK acquisition is billions$ of losses will bleed MSFT for many quarters. Its fact that MSFT-NOK has now basically FAILED in the future growth areas of computing: MOBILE and TABLETS. MSFT-NOK is getting it from both ends of the market, can't beat GOOG/Samdung/Android by making cheaper stuff (as GOOG gives away the software operating system just to get ads), and MSFT-NOK isn't making headway vs. APPLE on the higher end either. MSFT is thus becoming like JC Penney, in the shrinking Middle of the Market.
ok, but earnings were up 20% over last year's same quarter. Hence the stock should have support until the New Products iPHONE6 in several sizes and prices, even higher priced, comes out this Fall.
MSFT is getting it from both directions, and losing both ends of the market share spectrum. Take away MSFT's acquisitions revenues, and it had little revenues growth, and earnings decline.
Agreed. Also look beyond the numbers. MSFT is losing growth market share to GOOG/Samsung/Android on the low end (and how can you beat vs. free software GOOG gives away for ads), and to APPLE on the High End. MSFT is DIEING... the new JC Penney... caught in the shrinking middle.
NO ORGANIC GROWTH. Take out the sale from MSFT's unprofitable Acquisitions (Nokia...etc.) and this pig-with-wings stock has only single digits sales growth, and virtually no earnings growth (2% earns. per share growth is the forecast -- a jOKE)
IBM-Apple deal from high end, and GOOGLE free software and Android cheap phones from Low-End, put a Knife in Back and in Heart of MICROSOFT. Sooner you bail out of Dead Money MSFT, better off you'll be.
yep, its the Adams Family TV show all over. But don't forget, even though they were crazy, they were rich.
Lets face it, MICROSOFT would NOT be laying off over 10% of its workforce if it wasn't LOSING Market share in High End to APPLE-IBM, and in the low-end to GOOGL-Samdung products.
Lets face it, MSFT wouldn't be laying off 14,000 people or about 10% of its workforce, if APPLE was not "kicking its #$%$" on the higher priced end, and Google-Samdung steam-rolling MSFT-NOK on the mid to low end. So why MSFT laying off over 14,000 employees leads to MSFT stock being up?
Next thing we'll see write-off of acquisition billions paid for NOK
go figure. MSFT - NOK didn't make it, plain and simple. They are losing out to APPLE on the high end, and being steam-rolled by cheap no profits GOOGL / Samdung junk on the low end. Yet oddly no-growth MSFT's shares are up today.