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MSFT In The Negative With Market
The market is off today on slightly disappointing initial jobless claims released this morning, the ongoing unrest in Libya and the Middle East, downgrading of Spain, and slowdown of Chinese exports. Shares of Microsoft are down over 1% with the rest of tech. Upcoming catalysts include any entrance in the tablet market; Windows Phone 7 adoption with new partner Nokia; strides against current market leaders in cloud computing; gaining search market share with Bing / Yahoo! partnership (see below); and continued momentum of Kinect. The stock currently trades at 8x Enterprise Value / TTM Free Cash Flow, inexpensive compared to historical trading multiples.Kinect Is The Fastest-Selling Consumer Device Ever (Various via techDygest)
Microsoft has sold more than 10 million Kinect motion-sensing game system units worldwide in just over four months, making it the fastest-selling consumer device on record, according to Guinness World records. The Kinect sensor sold an average of 133,333 units per day in its first 60 days on sale from November 4, 2010 to January 3, 2011. By way of comparison, Apple’s iPad probably passed 10 million sales in early December, about 8 months after it went on sale. Read more at Business Insider.
Did Ballmer Screw The Pooch With HP? (Betanews)
The first paragraph says it all: “Somewhere, in an alternate universe, Microsoft did the right thing: bought Palm instead of cut a deal with Nokia. But in this reality, Microsoft screwed up, not just by letting Palm go but clearing way for HP to make the acquisition. Now HP, Microsoft’s strongest OEM partner, is turncoat, planning to put WebOS on every HP PC by 2012. It’s simply unthinkable.” Meaning, HP will be a competitor. Way to go Steve!
Microsoft Trying Its Hand (Again) At Music And Video (ZDNet)
According to sources, a new Microsoft project named Ventura will focus on “music and video delivery and consumption,” and will likely include recommendations, ratings and comments from users. How many times are they going to try this? Third time’s the charm? Currently it’s unknown how or when the service will launch. Read more from Matt Rosoff at Business Insider.
Microsoft Can Learn From Mistakes Of The Past To Formulate Tablet Entrance (eWeek)
Microsoft will eventually need to come up with a response to the iPad 2, Motorola Xoom and the onslaught of hundreds of other tablets. Fortunately, it can learn from the market as well as the Windows Phone 7 launch to help guide its strategy. The company should focus on: lightweight user interface, low cost (no one has beat Apple, yet), locked-down hardware, other Microsoft brand integration (Office, Xbox, etc.), get developers (and how!), sell into the enterprise, and have stylus-based technology.
Internet Explorer 9 To Finally Launch Next Week (CNet)
Internet Explorer 9, the next version of Microsoft’s Web browser, will be officially released this Monday at a press event at SXSW. Too bad it’s only offered to users of Windows Vista and Windows 7, leaving XP users, or 45% of the installed base, stuck on IE8. Internet Explorer senior director Ryan Gavin described the browser as offering up “a more beautiful web”. On its release day, Microsoft is having a press briefing where Gavin said there are still “a few surprises left.” Can’t wait.
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