Microsoft Earnings Report Fiscal Q1 2011

Lets put something in perspective here...

MSFT: 26.28
AAPL: 305.24
GOOG: 618.58

You are going to need a LOT of cash for AAPL and GOOG to make you significant money if you don't care about dividends and only buying and selling shares...a. lot.

Why? Future returns on ~1800 dollars invested in either 3 is determined by performance not the price of any individual share. Berthshire Hathaway had no problem growing even when its Class A shares went for 100K a piece. It only introduced B class shares as a measure against those who wanted to profit off its high priced shares by starting funds that pushed partial ownership to individual investors.
 
Absolute share price certainly matters if you want to buy in. You'd need more than $60k to directly invest in google.

What do you mean by "directly invest"? Buying shares directly from Google? One can go buy one share of Google if all you had was ~$630 dollars.
 
What do you mean by "directly invest"? Buying shares directly from Google? One can go buy one share of Google if all you had was ~$630 dollars.

Show me where i can buy one share without paying a huge premium. Stocks are generally traded in lots of 100+.
 
Show me where i can buy one share without paying a huge premium. Stocks are generally traded in lots of 100+.

I had a BOA which is now a Merril Lynch account and Im am not force to buy in lots of a hundred. I have a nephew that bought 5 shares of Apple at a share price of $195.

I have bought lots as small as 35, 25 and 10. You don't have to spend 60K to invest in Google.

Odd lots only become a problem when dealing with small companies who shares trade at low volumes.
 
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I may be wrong but last time I checked MS's stock prices were very high, with more stable profitability. MS's growth has been kind of stable. So, most likely the future return you will be getting wont be significant relatively to a company with much more growth opportunities.
MS has been "monopolizing" in the market for a long time. Now competitors like Apple are gaining ground and investors are noticing that market shares are shifting. An investment now on a company like Apple may be a better choice for future return on investment if you dont care only about dividends but about buying and selling shares.
Microsoft's stock price is less than half of what it was in 1999 (I know, that's when I first joined the company), even accounting for stock splits.
1999 full year revenue: $19 billion. 1999 Full year net profit: $7.7 billion.
2010 full year revenue: $62 billion. 2010 Full year net profit: $18.7 billion.
11 year profit growth: 140%
11 year revenue growth: 220%
11 year stock growth: more than -50%

Trust me, it makes some of us very sad...
 
This might help forecast Kinect shipments...

Taiwan-based optical lens maker Newmax Technology has become the only supplier of camera modules used in Microsoft Kinect sensors and will ship as many as 14 million units of these modules in 2010, according to industry sources.

Newmax's third-quarter revenues amounted to NT$687 million (US$22 million), of which 50-55% came from Kinect camera modules, the sources said.

Due to booming pre-orders for Kinect, Newmax has received additional orders for the camera modules, with some of the shipments scheduled for December 2010 or January 2011, the sources indicated.

http://www.digitimes.com/news/a20101028PD206.html

If these camera modules are just the CCDs, then it needs 2 CCDs per Kinect. So divide the 14 million shipments by 2 then you get 7 million Kinect sensors by end of calendar year. Microsoft's Greenberg said they "will sell in excess of 3 million units this holiday." The additional 4 million units won't make it till early 2011 like Digitimes guesses.

Tommy McClain
 
Microsoft's stock price is less than half of what it was in 1999 (I know, that's when I first joined the company), even accounting for stock splits.
1999 full year revenue: $19 billion. 1999 Full year net profit: $7.7 billion.
2010 full year revenue: $62 billion. 2010 Full year net profit: $18.7 billion.
11 year profit growth: 140%
11 year revenue growth: 220%
11 year stock growth: more than -50%

Trust me, it makes some of us very sad...

I remember that - Ms was the most valued company in the world at that time - worth more than half a trillion(!) $. I think the stock price was that high because they literally had no competition. Netscape was death, Apple close to it, Google didn't exist. Seemed nobody could stop them.
 
Part of it is that every year some investor or another is expecting this to be the year Microsoft starts to crumble and fail. But every year (on average) MS has been able to grow.

But next year could be the year they fail. And if not next year, then the year after. And if not... Well you get the idea.

It's to the point where it doesn't matter how successful MS is. It's all about investors being convinced that at some point MS is going to fail. And MS giving them the middle finger every year and growing.

Regards,
SB
 
Part of it is that every year some investor or another is expecting this to be the year Microsoft starts to crumble and fail. But every year (on average) MS has been able to grow.

But next year could be the year they fail. And if not next year, then the year after. And if not... Well you get the idea.

It's to the point where it doesn't matter how successful MS is. It's all about investors being convinced that at some point MS is going to fail. And MS giving them the middle finger every year and growing.

Regards,
SB

:LOL::LOL::LOL:
 
Part of it is that every year some investor or another is expecting this to be the year Microsoft starts to crumble and fail. But every year (on average) MS has been able to grow.

But next year could be the year they fail. And if not next year, then the year after. And if not... Well you get the idea.

It's to the point where it doesn't matter how successful MS is. It's all about investors being convinced that at some point MS is going to fail. And MS giving them the middle finger every year and growing.

Regards,
SB

Wait, I thought Java had already killed Microsoft, I remember reading that everywhere many years ago. Or was it Linux that killed them? Hmm no, maybe it was netbooks? Oh my bad, it was Ubuntu, yeah that must have been it. Unless it was BeOs? I forget...
 
Wait, I thought Java was killed by Microsoft, I remember reading that everywhere many years ago. Or was it Linux that got killed? Hmm no, maybe it was Apple? Oh my bad, it was Oracle, yeah that must have been it. Unless it was IBM? I forget...

Fixed that for ya.
 
Microsoft seem to generate a general hatred towards them. Most people seem to want them to fail for whatever reason. Frankly it always makes me chuckle.
 
I don't think that's the mainstream behaviour, and also not unique to MS. All big companies like IBM, Apple, Sony have their own camp of "dying" and "low sales/demand" predictors and believers.

Do people really predict MS dying when it has a Windows monopoly cashcow ? I think those statements are probably referring to specific aspects of MS, rather than MS as a whole.
 
Trust me, it makes some of us very sad...
they need to sack ballmer!

honestly since hes been in charge MS have gone downhill.
A perfect example
but win phone 7 OS
It launches and has less features than its competetion (ios + android)
10 years ago this wouldnt of happened

the less said about kin the better
 
Microsoft seem to generate a general hatred towards them. Most people seem to want them to fail for whatever reason. Frankly it always makes me chuckle.
In general I moderately dislike Microsoft, I hate Apple.

I only hate Microsoft for not pushing PC gaming and I think it's an incredibly bad policy which will significantly contribute in their loss of market share in consumer PCs (and in due time this will start eating into their cash cow market in the corporate environment).
 
I can agree on Ballmer. He comes across as disconnected and just outright insane. A CEO in such a public facing role should have an element of charm and charisma. He seems to lacks both. If he has a vision for the company, I sure in hell have no clue what that is.

Anytime he talks about a future product or venture, instead of a clear message what I see is someone getting overly excited, speaking louder and louder while repeating the same name over and over.

Let's give him credit (for converstations sake) that he is great for operations. Awesome! Put him there then! As the face of the company, he does a poor job of obtaining and retaining consumer confidence. Likewise for investors.
 
This might help forecast Kinect shipments...



http://www.digitimes.com/news/a20101028PD206.html

If these camera modules are just the CCDs, then it needs 2 CCDs per Kinect. So divide the 14 million shipments by 2 then you get 7 million Kinect sensors by end of calendar year. Microsoft's Greenberg said they "will sell in excess of 3 million units this holiday." The additional 4 million units won't make it till early 2011 like Digitimes guesses.

Tommy McClain


Kuro in Game informer said they want to sell over 4m this holiday. So who knows. Figure they are getting 14m this year and they need 2 in each as you said and thats 7m kinect sensors by the end of the calander year. So mabye they are hoping for 7m for the end of qtr 1 (calander year) sale. that be really good imo for the add on
 
they need to sack ballmer!

honestly since hes been in charge MS have gone downhill.
A perfect example
but win phone 7 OS
It launches and has less features than its competetion (ios + android)
10 years ago this wouldnt of happened

the less said about kin the better

Kin as a physical product was certainly a non-starter, but that had more to do with requiring a smartphone plan (for the Data use) for a non-smartphone than the product itself.

Kin however lives on and is a major part of WP7. But some things were done to reduce the data plan costs required. For example, resolution of images that can be automatically synced to the cloud or posted to facebook etc. have been limited in size greatly. But other than data useage reductions and some minor tweaks, Kin basically lives on in WP7.

As to WP7, it all depends on what you want. With some things it's a whole generation ahead of both IOS and Android. With some things, it still has to catch up. But do note that many of the shortcomings that people like to parrot are due in the first major update in the spring of '11. How many OS revisions did it take Apple before they were able to implement copy and paste? Which one will get Flash first?

There's going to be advantages and disadvantages between the 3 platforms. So a blanket statement that it has less features is a bit nonsensical when neither IOS nor Android have some of the features that will be available on WP7 by default. Now, whether those features are relevant to someone or not will determine which platform they go for.

So in a sense you could quite legitimately say that both IOS and Android are lacking in features compared to WP7. :p But it'd be far more correct to just say that each platform has features unique to itself or which it doesn't share with both or one of the other platforms.

Regards,
SB
 
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