Skip to comments.Microsoft Is Down 8.6% As The World Realizes The Windows Business Has Collapsed
Posted on 07/19/2013 7:38:31 AM PDT by SeekAndFind
Microsoft is down 8.6% this morning. The stock has been doing worse and worse since the company released earnings. Initial reaction to the release sent the stock down 2.5%. Then it was 5%, then 6% ... and now it's down over 8%.
Microsoft's Windows business is finally feeling the effect of the collapse of the PC industry, and the failure of Windows 8 to slow the iPad.
The Windows division's operating income was down 55% on a year-over-year basis, which dragged down the company's EPS. It also took a $900 million charge on the Surface RT, its iPad-wannabe tablet.
After posting earnings, Microsoft CFO Amy Hood told Dina Bass at Bloomberg, "it will take a long time" for Microsoft to make enough off tablets to erase the losses in the traditional PC market.
Microsoft's enterprise businesses remain strong, but that's not enough to keep investors happy.
(Excerpt) Read more at businessinsider.com ...
I know a lot of people are quite furious at Microsoft for working with NSA and DOJ on spying on Americans. I will never buy another Microsoft product because of that. I hope they take that into account because I know they’ve lost at least one customer because of it.
OH no! Bill Gates is now only worth $64 billion! Now he is going to have to sell the boat.
I am, right now, sitting in a building with thousands of people at computer workstations. All of them use Windows 7 and IE 9.
I’m no fan of Windows, per se, but it is not going away any time soon. Not even close.
He may actually reach that point in time where it is worth the time and back wear to pick up a thousand dollar bill on the sidewalk.
They still have tons of cash, expect them to start looking for companies to buy out.
...expect them to start looking for companies to buy out.
computers these days are so good ,you can go 5 + years without an upgrade
RE: I will never buy another Microsoft product because of that.
I gather you’ll refuse to buy another Google, Apple, Verizon or AT&T product as well?
Windows 8 certainly didn’t help. It is awful. I can’t imagine trying to upgrade a medium to large sized office enviroment to this version. The staff would revolt having to relearn everything they’ve figured out about Windows over the years. Major fail.
I am so glad! I used Microsoft products for years and always was frustrated with all the virus’ and other maladies. I purchased an Apple MacBook in 2008 and never looked back. Screw Microsoft! Apple all the way. Well that is if you would rather spend your time getting your work done rather then having to deal with the numerous virus’ that you get from Microsoft products.
I don’t think windows is done. I think MS is paying the price for Windows 8 and the Surface. They wasted too much money on both.
Windows 8 is a amazing mistake. IE 10 is crap.
I’m in the industry and have two laptops that are 7+ years old. Both running Windows 7. I want to upgrade, but probably won’t until something fries. It’s not really Microsoft’s fault that PC’s reached a good enough to do most anything except play the latest game plateau 7 or 8 years ago.
I’ve started limiting who I do business with based on their willingness to infringe on my Rights. I’ve found many alternatives out there to the big names that work quite well.
Coming to a conclusion about a stock price is about as dumb as anyone can get, and biased, too. If that were the case then we could jump to conclusions about every company with a downward stock price: GE is down, means no one wants to wash clothes anymore and aren’t buying their washers. GM is down, means no one wans to drive cars anymore.
The business world runs on PC’s. The business world is on hold due to Obamascare. No business is upgrading or adding new people due to lack of growth.
Windows 8 sucks! Everyone under the sun has been screaming that it sucks, and Microsoft hasn’t cared.
One point that tends to get ignored - hot money and stock options. If there is real money to be made in stock options - smart people will flock there to work - really smart people - and that eventually will filter into the product quality and innovation.
If it becomes clear that there is no real money to be made there then the smart people will go work where there is money to be made.
Thus creates a natural cycle of rise and fall of company dominance in the tech field. Follow the hot money. Right now it’s not at MS and likely never will be. But it was at one time.
I keep reading articles about the ‘collapse of the PC’ and now they are declaring the same for Microsoft? The mobile market has clearly encroached upon the PC but as someone whose job is intrinsically tied to a ‘machine’ there are things that are non-negotiable where hardware and OS are concerned - display size, interface, power. Too small and they’re a problem. As I see it the PC market is rapidly evolving but there are some fundamental features that remain the same. My money is on Microsoft and the PC-hardware players adapting... but is it really too late - is their demise eminent? Ask Apple.