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MSFT Down With The Rest
Stocks are sliding following worries about rising inflation in Asia and Ireland’s possible bailout. Shares of MSFT are down marginally. Upcoming catalysts include continued upgrade cycles of Office 2010 and Windows 7; any entrance into the tablet market (even just as an operating system); Windows Phone 7 adoption; strides against current market leaders in cloud computing; and holiday sales of Kinect. The stock currently trades at 8x Enterprise Value / TTM Free Cash Flow, inexpensive compared to historical trading multiples.
Microsoft Sells 1 Million Kinect In 10 Days (VentureBeat)
It’s now safe to say that motion-controlled gaming isn’t just a fad. And it’s not a supply constraint issue, Kinect is actually in demand. Microsoft said it has sold 1 million units of its newest motion-control system for the XBox 360, the Kinect, in just under two weeks. That is in line with expectations and the company is on track to sell 5 million controllers by the end of the year. Read more at Business Insider.
Facebook And Microsoft Deepen Alliance At Google’s Expense (VentureBeat)
Facebook announced that it is embedding Microsoft’s online versions of its Office applications into its new messaging service. Microsoft’s step into Facebook is less of a grab at the collaboration space and more like another jab at Google. This isn’t the first time Microsoft has jumped in bed with Facebook at Google’s expense. Most recently, Bing and Facebook announced a partnership that would allow Bing to return results based on the Facebook “likes” of a user’s friends. Microsoft’s investment is paying off in spades.
Early W7P Not Good Enough To Compete With Mature Android / iPhone (PC World)
Windows Phone 7 was delayed, a lot. Had it been rushed, it might excuse some of the issues. There is a lot to like about Windows Phone 7, but missing features and functions place it at a distinct disadvantage. It may be the first release of Windows Phone 7, and perhaps we can forgive Microsoft some minor faux pas. Even iPhone and Android have issues arise when new releases or updates to the OS are unleashed. But, Microsoft has to respect that it is launching a new mobile OS that has to compete from day one against mature smartphone platforms like iPhone and Android.
Microsoft Accused Of Wrongly Classifying Revenue (Electronista)
Microsoft has been accused of inflating its Windows revenue figures. An SEC filing shows that the company’s record revenues could have boosted Windows revenue by as much as $259 million through diverting sales from the Entertainment and Devices group. While it’s a good chunk of change, on $60 billion of annual revenue, I don’t think investors are going to care.
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