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MSFT Down 25% YTD
Shares of MSFT are down more than 25% year-to-date as the software giant seems to fall behind in the technology race. Microsoft remains in a challenging spot as the world moves away from PC-based computing toward cloud and mobile computing. The next potential catalyst is the upgrade cycle of Office 2010 and Windows 7. The stock currently trades at 12x 2010E P/E, inexpensive compared to historical trading multiples, but Microsoft’s rapid growth days are likely behind it.
Top Performing Advisers Recommend MSFT Over AAPL (Market Watch)
Adding Microsoft to your portfolio might seem counteractive given the company is seen as a “has been.” But based on top performing investment advisers as tracked by the Hulbert Financial Digest, at least 11 advisers are recommending purchasing the stock at current levels. Given the drop in valuation, if you believe that Microsoft can turn the ship around, it’s not a bad long-term hold.
Current Levels Low-Risk Entry Point To MSFT (The Street)
Microsoft stock has been getting slammed for nearly two straight weeks. The bull move that elevated the stock from last year’s March lows of $15 to over $31 took a little over 12 months to complete. It has taken only 10 weeks to retrace half of the rally. Near the current $23 level, the stock is now at a very low-risk entry point.
Microsoft Tablet Courier Might Not Be Dead (Gizmodo)
An email response from Steve Ballmer may indicate that the Courier is still alive and they are “working on things.” Microsoft was also granted a patent for a “dual display device.” While the company obviously won’t show its cards (while everyone else plays the game), it’s encouraging to see signs that Microsoft is bringing elements of the Courier to life.
Azure Retaining Business Users (CNet)
Microsoft’s cloud-computing push, Windows Azure, which launched six months ago, has already attracted thousands of users. The service could prove to be central to the company’s future growth plans. The company isn’t giving names, but Bob Muglia, President of Server and Tools, says that many businesses are continuing to use the service after its initial period as a free service ended.
Can Microsoft Find Its Mojo With Windows 7? (Market Watch)
Less than three months after the launch, Microsoft’s Kin phones failed to gain traction leading Verizon to cut prices in half. Microsoft is pulling the plug on the product line, according to Business Insider. John Letzing at Market Watch explains if Microsoft can find its way back into the mobile race.