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MSFT Off With Market
Markets are bleeding in morning trading as claims for unemployment benefits rose more than expected last week, suggesting little improvement in the labour market this month after employment stumbled in May. Shares of MSFT are off over 1% as well. Upcoming catalysts include second calendar quarter results to be released in July; the company’s Analyst Day at its new developer conference (BUILD) in September; 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 (see below); and continued evolution of Kinect and the next generation Xbox console. The stock currently trades at 7x Enterprise Value / TTM Free Cash Flow, inexpensive compared to historical trading multiples.Box.net Partners With Google To Take On Microsoft (Fast Company)
Probably not difficult after yesterdays crash. Cloud storage and collaboration startup Box.net is upping the ante with the launch of an in-depth integration with Google’s productivity suite Google Docs and Spreadsheets directly within the platform. Box, which has 6 million users and stores 300 million documents, is a cloud storage platform for the enterprise that comes with collaboration, social and mobile functionality. This move could be a knockout punch to Microsoft’s cloud document service Office 365 debuting next week.
Wyoming Shuns Microsoft, Goes Google (Electronista)
Wyoming has become the first state to begin using a suite of cloud computing tools from Google for its entire executive branch of government. Governor Matt Mead announced the transition of 10,000 state employees to Google Apps for Government yesterday. Wyoming started the process of looking at migrating to a new platform in 2008. The competition narrowed down to the usual suspects, Google and Microsoft.
Google Hits One Billion Site Visitors In May, While Microsoft’s Traffic Increases 15% Y/Y (CNet)
Google saw one billion people around the world visit its Web site in May, the first time ever that an Internet company has drawn in that many visitors in one month, according to comScore. The search giant has witnessed the number of unique visitors to its site rise by 8.4% from 931 million a year ago. During the same period, Microsoft maintained the No. 2 position with 905 million unique visitors in May, up 15%, while Facebook’s count surged by 30% to about 714 million visitors.
Research In Motion Cuts PlayBook Sales Expectations (Electronista)
According to the supply chain, Research In Motion has quietly cut its sales expectations for the BlackBerry PlayBook after its disappointing sales from the spring. It had planned for as many as 2.4 million of the tablets in its summer quarter but had now pared that back to between 800,000 and 900,000 units. With the stock so cheap, Microsoft has no excuse not to buy the company now.
Daily Trader: Microsoft Trading At Double Digit Discount (Seeking Alpha)
Getting a discount of 10%, 20% or even more is awesome. And for those of us that like buying stocks at a discount, the recent market pullback have finally provided a little relief. Microsoft is a dividend growth stock with a yield of 2.6% trading at a double-digit discount of 11.6%
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