Microsoft not fairing well on Wall Street

Even though Microsoft appears to be on the cusp of a revolution of consumer devices e.g. Windows Phone 7 and Xbox Kinect, Wall Street seems to be having cold feet when it comes to recommended them for investment.

Seeking Alpha is reporting that just this month FBR, Goldman, Janney Capital, Pacific Crest and Barclays have all issued a 'cut' for Microsoft. Most of this has to do with the news of PC sales leveling off this last quarter, which seems to be negating the other news of Windows 7 being the fastest selling OS in history.

Not all is bad though, as the feeling on Wall Street seems to be that MS is just performing flat for awhile, though we'll see what they have to say come Thursday when they report their earnings.

Daniel Rubino

Daniel Rubino is the Editor-in-chief of Windows Central, head reviewer, podcast co-host, and analyst. He has been here covering Microsoft since 2007 when this site was called WMExperts (and later Windows Phone Central). His interests include Windows, Microsoft Surface, laptops, next-gen computing, and for some reason, watches. Before all this tech stuff, he worked on a Ph.D. in linguistics and ran the projectors at movie theaters, which has done absolutely nothing for his career.

  • Wall street is so near sighted on lots of things, I doubt anyone back in 2001 thought the Xbox would go anywhere and that Sony would dominate for a long time, ooops! Right now they're all so gaga over Apple and to a lesser extent Google that they can't see past the next quarter of sales. It's simple, if WP7 sales are strong and MS can start to gain market back they'll all change their tune in a heartbeat. Then watch the stock skyrocket. Good solid kinect sales will also have the same effect but not as big as what WP7 could do, it just helps that MS isn't selling kinect units for a loss it seems, at $150.
  • Wall Street has ignored Microsoft for over a decade; the stock price has been below $30/share for most of the last 10 years, while Apple is over $300/share now. Why?
    Microsoft has consistently posted tens of billions of dollars in revenue and billions of dollars in profit, but they haven't gone out of their way to enrich the Wall Street bankers, neither by issuing new stock, nor doing any significant stock buy-backs nor borrowing significantly. They have grown organically by self-funding their operations out of revenues and making strategic purchases using stock and cash on hand.
    It's not hyped by the whores because there's no money in it.
  • They did have a small buy-back plan a few years ago from what I remember. A few billion? But anyways, as of today there's something like 8.65 billion shares out there, I don't think you need to issue more. A nice dividend every now and then wouldn't hurt I guess.