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Dan Frommer, Business Insider
MSFT Up With The Markets
The markets are on the rebound in early trading, bucking the recent slump, as first time unemployment claims last week drop. Shares of MSFT are up, slightly trailing the broader tech market. 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.Keep Your Enemies Closer; RIM Teams Up With Microsoft (Bloomberg)
Research In Motion is teaming up with Microsoft to handle the growing amount of data its customers are using on mobile devices. The partnership will make it easier for customers to use cloud computing. Microsoft will no longer charge Exchange Online customers extra to sync. The move makes Microsoft more competitive with Google’s hosted Gmail for businesses. Read more at Business Insider.
How Microsoft Stock Could Double (The Motley Fool)
It’s not about beating Apple. It’s a simple tweak to capital allocation. The market might not be willing to pay up for Microsoft’s earnings, but it will for its dividends. Microsoft generated $23 billion of free cash flow last year. It currently pays about 20% of this cash out as a dividend. Most of the remainder goes toward share repurchases. If it simply stopped repurchasing shares and paid all its free cash flow out as a dividend, the dividend yield at current share prices would be nearly 12%.
Microsoft Might Be Moving Xbox Live To The TV After All (Windows 7 News)
Microsoft is working on a new project, code name Orapa, that would combine the Xbox 360 and Microsoft’s Mediaroom IPTV. This could set Microsoft up to deliver a TV service, similar to their current ESPN and Sky Sports options, to your TV using the Xbox console. When you add the Kinect into the mix, you have a potentially killer TV service that could be controlled from your couch with hand gestures and voice command.
Microsoft Harnesses Groupon And Others To Offer Deals On Bing (eWeek)
Microsoft Bing is the latest to delve into local daily deals, which it collects from The DealMap to tempt mobile phone users. The company added a deals tab to its Bing search engine to let iPhone and Android phone users receive daily discounts to neighbourhood businesses. These offers aren’t generated by any Microsoft. They are surfaced from Groupon, Restaurant.com, LivingSocial and about 200 other daily coupon sites aggregated by The Dealmap.
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