Microsoft to Restructure?
Microsoft just reported disappointing earnings and guided lower going forward. Will they restructure? Will they spin off units (X-Box?) or break up? The problems with vista have been well documented and discussed in other threads.
See below 5 year chart on MS. Is it time for a restructure?
This is not meant to be a MS bashing thread.
See below 5 year chart on MS. Is it time for a restructure?
This is not meant to be a MS bashing thread.
Comments
Originally posted by ThinkingDifferent
How can they have disappointing earnings if they are a monopoly?
I think a lot of analysts are asking that question to.
Originally posted by Splinemodel
MS has a lot of money. They will probably do a little bit of shuffling, but it's not exactly red alert.
Yeah, I tend to think that any changes will be small but am curious to see what others think.
Originally posted by ThinkingDifferent
How can they have disappointing earnings if they are a monopoly?
Easy. Monopolies can die due to the market finally realizing that the cost of staying with the 'easy choice' is higher than looking at niche alternatives.
Or, the earnings forecasts were *SO* out of whack with reality, that they didn't meet them.
Or, they failed to grow as much as they wanted to in *new* markets that have nothing to do with their monopoly market.
Or...
Lots of reasons.
Originally posted by Shadow Slayer 26
ha by disapointing it means people are Switching. And that they didn't make as much money as before. What I hope happens is that the Xbox department breaks away from Microsoft and then the rest of microsoft dies...a guy can dream lol.
investors are switching, mutual funds, pention funds look at GROWTH and earnings, they look for the next big thing, at one time sears was number one, then kmart, then walmart, target spanked them last year. so remember wallstreet looks at the next 3-6 months unlike say japan that looks years down the road. MS is worried it's losing to google, yahoo etc. also they are VERY vunerable to losing their cash cow...office to online open source versions, eastern countries and some easter US states are pissed off at the licensing fees, open source and lixux is growing. soooooo if google or yahoo can get an online version of office WOW!!! look at MS stock the last few years. hmmmmm mature , not growing, alternatives to a monopoly, hey where do you put your money??? many are saying "not MS". if they perform then they'll go back, but money managers are held accountable to the investors and your butt depends on growth and earnings.
"Or, they failed to grow as much as they wanted to in *new* markets that have nothing to do with their monopoly market.
Or...
Lots of reasons."
the monopoly is losing it's grip on the market and the market will "break it up" as viable alternative creep in the monopoly loses big and fragments. don't you think that firefox, google, yahoo, causes MS grief, if they were a true monopoly then they wouldn't care, but they are realizing as we are that MS is very very vulnerable, thus investors want their money to go where it can grow. MS is a software company, unlike apple that makes everything work together MS mindset doens't allow for it...several analysts bring up the lack of MS doing an "iPod" or ANY hardware....MS days are perhaps passsing to a new paradigm... maybe we should be buying utilities like buffet. it seems like a piling on thing, os x is growing, firefox is growing, MS can't curb the virus attacks, more broadband penetration, open source, linux and delay delay delay in their "new operating system" businesses and IT are looking hard at ways around MS, look at how many still run windows 2k!!!!