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MSFT Up Slightly As Market Rises
Shares of MSFT are up today as the market gets a boost from reports indicating a modest gain in the job market. Upcoming catalysts include upgrade cycles of Office 2010 and Windows 7; any entrance into the tablet market; the launch of Windows 7 mobile; any adoption of Azure (cloud computing); and gamer reaction to Kinect. The stock currently trades at 8x Enterprise Value / TTM Free Cash Flow, inexpensive compared to historical trading multiples.
Verizon Dropping Google Search For Bing For Entire Droid Line? (Android Guys)
After the recent news and related gossip about Verizon’s decision to drop Google Search in favour of Bing, Android Guys have heard that the Bing deal might go beyond the Samsung Fascinate. Unconfirmed reports say that Verizon may possibly be ditching Google Search for their entire Droid lineup as well. If that’s the case, it’s great news for Microsoft. Licensing software and exclusive partnerships are what help differentiate handsets.
Google’s Instant Search A Thorn In Microsoft’s Side (The Street)
Google’s new and improved search functionality showing results as users type is bad news for Microsoft. Bing desperately needs to compete on equal footing with Google. With Instant, Microsoft isn’t on equal ground anymore. The threat being that users will leave Bing for Google meaning that advertising dollars will leave Bing as well. And that’s bad for investors. Microsoft is going to have to play catch up once again.
Too Little Too Late; Microsoft Continues To Lose Search War (The Motley Fool)
No matter how you slice the search share numbers, the game is already over in favour of Google. Advertisers can bypass Bing and still reach a majority of the Internet’s curious browsers. Three years ago, Microsoft executive Kevin Johnson was targeting roughly 35% market share in search and 40% in online advertising within three to five years. Microsoft isn’t remotely close to those numbers.
Microsoft Introduces Kinect To Japan In Game Of Catch Up (ABC News)
Microsoft debuted its controller-free Kinect in Japan yesterday in hopes of attracting gamers in that market. Microsoft has some catching up to do in Japan. As of last week, it had sold some 150,000 Xbox 360 console this calendar year. Nintendo sold about a million Wii units during the same period, while Sony sold just under a million.