It's not what you think; but it is. They grow by just a little (12%) and the company earns $35 Billion.
It just means that they HAVE ALOT.
Way to go Vista; maybe now everyone won't trash it so much! At least until SP1 is relased.
-Dave
Microsoft Surges After Sales, Profit Beat Estimates (Update5)
By Dina Bass
Oct. 26 (Bloomberg) -- Microsoft Corp. shares soared to their highest level in six years after first-quarter sales beat projections by more than $1 billion, proving the new version of Windows has reinvigorated growth.
Microsoft, the world's largest software maker, rose the most in seven years on the Nasdaq Stock Market. The shares advanced $3.87, or 12 percent, to $35.86 at 12:01 p.m., the highest since July 2001. The company added about $35 billion in market value and posted the biggest gain in the Standard & Poor's 500 Index.
Sales of Windows Vista for personal computers climbed 25 percent, helping Chief Executive Officer Steve Ballmer reassure investors who'd been disappointed by the operating system's lackluster early adoption. The stock had lagged rivals this year, and the report allayed concern that Microsoft's growth depends on cracking Google Inc.'s dominance in Internet advertising.
``This is a big deal,'' said Jane Snorek, a Minneapolis- based analyst at First American Funds, which manages $55 billion in assets, including Microsoft shares. ``It will change the sentiment on Microsoft absolutely.''
Net income increased 23 percent to $4.29 billion, or 45 cents a share, beating the 39-cent average of 15 projections in a survey by Bloomberg. Sales advanced 27 percent to $13.8 billion, driven by orders for the pricier versions of Vista and the debut of the ``Halo 3'' video game.
Friday, October 26, 2007
More news - Microsoft
Thursday, October 25, 2007
A good Move
It's always good to see innovation get rewarded. This little cash injection will help Facebook get to the next level.
Oct. 25, 2007, 7:38AM
Ahead of the Bell: Microsoft
© 2007 The Associated Press
NEW YORK — Analysts said Thursday that Microsoft's $240 million investment in Facebook should help the software company gain a stronger foothold in the online advertising and search market.
The investment, for a 1.6 percent stake, values the social networking Web site at $15 billion, a substantial sum considering the online hangout's beginnings in a dorm room less than five years ago.
"We believe that the Facebook partnership represents another step in the right direction for Microsoft in its effort to build a larger online platform," said Lehman Brothers analyst Israel Hernandez. He maintained his "Equal weight" or "Hold" rating and $34 price target.
As part of the deal, Microsoft will sell Internet ads as the site grows internationally, expanding a marketing relationship that began last year.
The investment should help Microsoft claim a piece of the $40 billion advertising market, especially considering Facebook's 50 million active users, Hernandez said.
Cowen and Co. analyst Walter Pritchard maintained his "Outperform" or "Buy" rating on Microsoft, and said the advertising component of the deal is a positive.
"The additional Facebook partnership announced yesterday keeps Microsoft relevant as the strategic provider of display advertising for one of the hottest online properties," said Pritchard.
The partnership, he said, underscores the need for Microsoft's online growth, especially in the face of extreme competition from Google Inc. and News Corp.'s MySpace.com.
Over time, Hernandez expects Facebook to integrate Microsoft's online services _ including its Live Search, a Google rival _ providing the company "a more captive forum for hosting and monetizing" the Internet.
Shares of Redmond, Wash.-based Microsoft rose 30 cents to $31.55 in premarket trading Thursday.
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