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MSFT. By Ajinkya Deshpande David Zelanis. What is Microsoft. Founded in 1975 World leader in Software, Services, and Solutions 5 Segments: Windows and Windows Live division, Services and Tools, Microsoft Business Division, Online Services Division, Entertainment and Devices Division.
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MSFT By Ajinkya Deshpande David Zelanis
What is Microsoft Founded in 1975 World leader in Software, Services, and Solutions 5 Segments: Windows and Windows Live division, Services and Tools, Microsoft Business Division, Online Services Division, Entertainment and Devices Division
Acquisitions VideoSurf - Video Content Discovery Company Prodiance - MS Office Security Skype- Video Calling Company
SWOT • Strengths • Large amount of cash and cash equivalents • Different business divisions that help give the company diversity • Monopoly like powers with its operating system and office suite • Multinational Corporation working in over 60 countries • World’s largest software company • Weaknesses • Arguments over wasteful R&D expenditures • Large amounts of Cash which could be used for business investment • Reliant upon hardware manufacturers preinstalling their software. • Opportunities • Growth in video game market as the x-box becomes more popular (new-gen system) • Expansion into operating systems for phones • Improved economic conditions • Increased market share for their search engine which is second only to google • Threats • Downturn in the economy • Increased pressure from competitors • Lawsuits with other firm companies • Strong competition from companies such as Oracle and IBM • Decrease in operating market share (Apple and Linux) • Increase in Cyber crime
Microsoft to pay Nokia more than $1 bn for Windows based handsets Nokia smartphone sales beat analyst estimates More than 1mn Lumia handsets sold in the last quarter http://www.youtube.com/watch?v=k3Nfh9bl0Z8 http://www.youtube.com/watch?v=p92QfWOw88I Mircosoft Nokia Deal
Recommendation Buy Microsoft has strong earnings and gives a good dividend The stock is also currently undervalued