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MSFT Up Strong With The Rest
Markets are surging on news of drop in jobless claims for last week, giving stock some relief as debt ceiling discussions are still ongoing. Shares of MSFT are up strong almost 2.5%. Upcoming catalysts include the company’s Analyst Day at its new developer conference (BUILD) on September 14; Windows Phone 7 / Mango adoption with hardware partner Nokia; strides against current market leaders in cloud computing; entrance in the tablet market at some point; making money in the online business, including integration of Skype and improving the search / display business; and continued evolution of Kinect and next generation Xbox console. The stock currently trades at 8x Enterprise Value / TTM Free Cash Flow.
Companies, Including Microsoft, Stashing Profits Overseas To Avoid Taxes (Reuters)
Want to know why tax from corporate profits isn’t making much of a dent in our crippling budget deficit? A glance at Microsoft’s recent results provides some clues. The company reported only $445 million in taxes, just 7% of its $6.32 billion in pre-tax profit. How? Microsoft is increasingly channeling earnings from sales to customers throughout the world through the low-tax havens of Ireland, Puerto Rico and Singapore. And the company can argue that it is only behaving in the interests of its shareholders. Conundrum.
Mango About A Month Out (USA Today)
The newest version of the Windows Phone OS, Mango, has reached the release to manufacturing (RTM) stage. Microsoft officially announced that developers will be able to start submitting their content for the latest version of the platform in August. Matt Rosoff at Business Insider asks, does it really matter? Also announced were details of 19 new consumer markets for Windows Phone Marketplace. Apple’s iTunes App Store is in about ~120 markets.
Microsoft Finally Opens A Retail Store In Its Backyard (TechFlash)
Microsoft officially announced the opening of Seattle’s first Microsoft Store at University Village. The company currently operates 12 retail locations around the U.S. Microsoft recently announced plans to add 75 more Microsoft Stores over the next two to three years to compete with Apple’s storefronts. Apple has more than 300 retail stores; including six in the greater Seattle area.
Microsoft Adding Employees In Asia-Pacific To Compete With Apple And Google (Bloomberg)
Microsoft plans to add 750 employees in the second half of the year to its research operations in the Asia-Pacific region starting in September, bringing the total to about 4000. The new hires will mainly focus on research for cloud computing, searching and digital entertainment.
Microsoft Goes Through Reorganization, Azure At The Forefront (HPCwire)
For the past few months, there have been rumours of a substantial reorganization in Microsoft’s High Performance Computing (HPC) group. And it finally happened. Kyril Faenov, who led the Technical Computing Group, is now in an advisory role, focusing on long-term planning. Faenov answers directly to Satya Nadella, the president of Microsoft’s Servers and Tools Business (STB). HPC has become more of a first-class citizen at Microsoft, being folded into the Server and Cloud Division.
Ex-Microsoft Executive Finds A Home (paidContent)
Scott Howe, who resigned his post as the head of Microsoft’s advertiser and publisher solutions group in April, has been named CEO of digital marketing services company Acxiom. Howe had come over to Microsoft in the $6 billion acquisition of interactive agency aQuantive back in 2007, which Microsoft all but killed.