The Microsoft Investor is a daily report from SAI. Sign up here to receive it by email.
MSFT Down With Tech
The market is down despite better than anticipated jobless claim numbers as investors fear China’s rapid economic growth may lead to more aggressive measures to tackle inflation. Shares of MSFT are down with the rest of technology. Upcoming catalysts include holiday quarter earnings results announced after the close on Thursday, January 27; entrance and uptake in the tablet market (a ways off); Windows Phone 7 adoption; strides against current market leaders in cloud computing; and continued momentum of Kinect as well as other uses for the technology. The stock currently trades at 9x Enterprise Value / TTM Free Cash Flow, inexpensive compared to historical trading multiples.
Microsoft Turns To Groupon To Move Some Phones (IntoMobile)
A Microsoft store in Illinois posted a deal on Groupon that offered two Windows-based smartphones for a lowly $49 (a 50% discount). Desperation is the first thought that comes to mind, especially when such a heavy discount is offered on hardware that is only a few months old. It also took until after noon to reach the 20 phone limit to clear the deal. If Apple ever did a deal like that it would be over before it started. That doesn’t bode well for the Windows mobile platform. Read more about how bad Microsoft phone sales must be at Business Insider.
Yahoo! Signs Search Over To Microsoft In Three More Countries (Search Engine Journal)
Yahoo is letting Microsoft take over the back-end of search in three more countries: Australia, Mexico and Brazil. The initial deployment happened in the U.S. and Canada, and it’s expected that the majority of Yahoo properties will be making the transition. However, that’s not the case worldwide; Japan’s Yahoo, and the leading search engine of that country, decided to work with Google because of Google’s language capabilities.
HP And Microsoft Dish On Cloud Computing Partnership (All Things D)
About a year ago, Hewlett-Packard and Microsoft announced a three-year, $250 million deal to team up around cloud computing. The two companies have built four enterprise-focused appliances that reportedly will combine applications, infrastructure and productivity tools into a single unified system. Why spend so much to team up? Microsoft and HP think that by 2015 there’s a combined market worth $55 billion for business intelligence, data warehousing, messaging and online transactions. Now they just have to prove these appliances can sell.
Another One Bites The Dust, Windows Executive Leaving (The Seattle Times)
Brad Brooks, corporate vice president in Microsoft’s Windows group, is leaving the company to join Juniper Networks. Brooks has been head of Windows Consumer Marketing and Product Management at Microsoft, and worked on marketing during the launch of Windows 7. It must be really bad. Juniper?
And Another One Down, Top Kinect Researcher Jumping Ship For Google (CNet)
Johnny Chung Lee, a researcher in Microsoft’s Applied Sciences group and an integral player in the development of the company’s Kinect motion-gaming peripheral, has left to work at Google in special projects. Lee worked on Kinect at the very early stages seeing the project through two and a half years. Given his history, it’s likely that Lee is working on something game-related at Google. Perhaps that’s why the search giant just squashed Kongregate’s mobile arcade app. Learn more about Kinect from Business Insider’s Matt Rosoff.
Daily Trader: Buy Apple And Sell Microsoft In 2011 (Forbes)
Despite the uncertainty regarding Steve Jobs, investors are bullish on Apple. On the other hand, there’s the stuck-in-the-past management team at Microsoft. Tied to ageing, outdated products and distribution plans built on PC technology that is nearing end of life. But in the midst of the management malaise, Kinect suddenly showed up as a bright spot. Unfortunately, Microsoft seems far too stuck in its old ways to take advantage of this disruptive opportunity. The simplest trade of 2011 is to sell Microsoft and buy Apple.
Business Insider Emails & Alerts
Site highlights each day to your inbox.