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MSFT Up Slightly As Market Soars
The market is up strong after yesterday’s Fed announcement to bail out the economy. Shares of MSFT are up marginally in early trading. 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 9x Enterprise Value / TTM Free Cash Flow, inexpensive compared to historical trading multiples.
Microsoft Increases Kinect Estimates (VentureBeat)
Microsoft plans to sell more than 5 million Kinect motion-sensing systems for the Xbox 360 this quarter, up from its previous forecast of 3 million units. Based on pre-orders, retail orders, and consumer interest, the company believes it can do a lot better than it previously thought. If Microsoft hits that goal, then Kinect will be a hit. But the pressure is on to show results from Microsoft’s consumer products research and development black hole. Based on early reviews, Kinect is certainly going to get some people off the couch, especially those who are fond of activity games. Read more from Business Insider‘s Matt Rosoff.
Bing And Facebook Roll Out Social Search (CNet)
Bing has rolled out its new social search, a feature that can display profiles and updates from your Facebook friends as part of your Bing search results. While the Facebook integration has been in the works for a few weeks, the techs at Bing tweaked the feature before yesterday’s rollout. If users opt to link their Facebook account with their Bing log-in, searching for the name of Facebook friends in Bing brings up a link to that person’s entire profile in the results. Users can also retrieve results for items “liked by your Facebook friends.” It’s an early window in, one that I’m sure Google is jealous of.
Can Microsoft Get Its Mojo Back From The Decade That Wasn’t? (Time)
At lot happened in the last decade and Microsoft stood and watched. In fact the company still acts like a lumbering, ham-fisted behemoth. Only a company cursed by near infinite resources would even consider building two parallel future mobile operating systems at once (Kin). Still, there are plenty of signs that it understands the enormity of the challenge ahead. Its new corporate tagline, “Be What’s Next,” may address consumers, but it serves equally well as a mission statement for a company that’s still in the process of figuring out how to be what’s next.
Microsoft To See Greater Business Adoption Of Windows 7 (eWeek)
Microsoft can expect businesses to adopt Windows 7 in greater numbers over the next few years, as those firms undergo an inevitable tech refresh according to Forrester Research. The report also suggests those firms will use the tech-refresh opportunity to install their offices with a variety of new hardware and software (enter Apple and Google).
COO Sells Shares For $1.3 Million Gain (GuruFocus)
Microsoft COO Brian Kevin Turner sold nearly 49,000 shares of MSFT on Monday at an average price of $27 a share, a price-point not seen in the stock since May. Congrats to Kevin for holding out, that’s a $1.3 million dollar pay day.