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Not Blown Away By Microsoft and Ballmer - Here is Why
Excerpt from the InvestorGuide.com Stock of the Day on 10/23/2009

Suddenly, Wall Street is in love with Microsoft again. Gone are the complaints regarding a high-profile operating system that was seemingly universally panned, the search business which loses just about the same amount of money that it makes each quarter etc. The stock is up close to 10% this morning thanks to the optimism surround yesterday's launch of Windows 7 and today's earnings report, which really was not that impressive except for the fact that it beat reduced analyst expectations largely on the back of cost-cutting. Things were not as bad at Redmond a few months as everybody would have you believe and things are not as good as today's rosy stock performance indicates.

As the recession has dragged on, a couple of factors have helped companies beat earnings estimates with more regularity -- a) analyst estimates are revised lower and lower to account for the depressed market and b) it is easier for companies to cut costs, e.g. layoffs and other cost-cutting measures face less opposition internally as employees come to grips with the tough environment, executives look harder under every nook and corner to find savings. Microsoft certainly has benefited from these circumstances. It had its first round of layoffs ever in January of 2009 as 5,000 people were told they would lose their jobs over the coming 18 months. On today's conference call to discuss earnings, MSFT said headcount was down 4% and operating expenses for the full year were going to be reduced by another $400 million. Overall revenue for the quarter came in at $12.92 billion (down 14%, the street was expecting $12.37 billion) and earnings came in at $3.57 billion or 40 cents a share (down from 48 cents a year earlier, the street was expecting 32 cents). More >


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Why Microsoft Bombed its Earnings Report?
Excerpt from the InvestorGuide.com Stock of the Day on 7/24/2009

Boy, when does Steve Ballmer start feeling the heat? After the bell yesterday, Microsoft reported its first-full year of revenue decline in over two decades as a publicly traded company. Things were weak in all major divisions especially the Windows one (revenue down 29%). It's not too often that you see a major tech giant like MSFT miss analyst expectations for topline by more than a billion dollars. The stock dropped 7% after the report but then MSFT prevented things from getting real ugly by offering optimistic guidance during the conference call. The tone was very much along the lines of this is the worst that things are going to get and demand in the PC and server markets should pick up next year. Plus, MSFT is also trying to sell investors on Windows 7 and a new version of MS Office. Therefore, even though the stock is off about 10% this morning from yesterday's close, there is still some optimism in the air about the future at Redmond. More >

Microsoft Seeking to Unload Razorfish
Excerpt from the InvestorGuide.com Stock of the Day on 6/29/2009

Every company fits into some sort of category. Some companies are fast-thinking, innovative, or determined. Some make wise decisions while others are considered incompetent based on consecutive poor decisions. Imitation runs rampant among companies, but sometimes it can lead a company down the wrong path. This appears to be the case with Microsoft. Reports surfaced today suggesting that Microsoft is trying to unload its advertising agency Razorfish. Microsoft has only owned Razorfish for less than two years, so why is the company looking to sell the business so soon? What possessed the company to purchase the ad agency in the first place? More >

Microsoft Makes Strategic Purchase to Enhance Search
Excerpt from the InvestorGuide.com Stock of the Day on 8/29/2008

Microsoft might not have had any luck in acquiring Yahoo but that doesn't mean that their deal-making efforts have gone on the backburner. The software giant announced today that they will be purchasing a German-based Web site producer in a move that will help expand business in Europe. The acquisition could prove more strategic for its US presence though as well, where the competition in the Search market continues to increase. Is today's purchase Microsoft's way of sending Google (GOOG: Charts, News, Offers) and Yahoo (YHOO: Charts, News, Offers) a message about its plans for Search dominance, or will any benefit from the deal remain on European soil? More >

Should Microsoft Walk or Double-Down?   5/2/2008

Microsoft Bids $1.2 Billion for Search Company   1/8/2008

The Blue Monster's Cold Day in Court   9/17/2007

Microsoft Shells Out $6bn for aQuantive   5/18/2007

Vista May be Delayed but Microsoft Stock is Up   1/26/2007

Microsoft Shares Regaining Some of Their Luster   10/13/2006

Microsoft (MSFT) Upgrades

Date
Analyst
Old Rating
New Rating
10/27/2009
Argus
Sell
Hold
10/26/2009
Canaccord Adams
Hold
Buy
08/18/2009
Broadpoint AmTech
Hold
Buy
04/24/2009
Morgan Stanley
Equal Weight
Overweight
04/07/2009
RBC Capital
Sector Perform
Outperform
03/31/2009
Davenport
Neutral
Buy

Microsoft (MSFT) Downgrades

Date
Analyst
Old Rating
New Rating
09/28/2009
Independent Research
Buy
Accumulate
01/23/2009
Davenport
Buy
Neutral
10/16/2008
Canaccord Adams
Buy
Hold
02/11/2008
RBC Capital
Outperform
Sector Perform
02/01/2008
Pacific Growth
Buy
Neutral
01/24/2007
D.A. Davidson
Neutral
Buy

Microsoft (MSFT) New Coverage

Date
Analyst
Rating
11/18/2008
Caris & Co
Average
03/05/2008
Jefferies & Co
Buy
01/31/2008
Stanford
Buy
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