A look at Bill Gates reported and estimated $90 billion net worth from his net worth of $60 billion back in 2011 indicated the growth of Microsoft and its performance which is now nearing its all-time high.
The company, in the past, has struggled to keep up with its competitors, Apple specifically after it failed to venture into the mobile business after acquiring Nokia all the while losing $7.6 billion at the same time which causes layoffs.
It can be remembered back in 2015 that the company laid off almost 7,000 people was followed up with another 2,850 employees working on their phone and hardware sales last July. There was also a layoff of 1,850 employees working under the company’s Smartphone units back in May this year.
Microsoft Leadership and LinkedIn
In August 2013, the shares of the company jumped by 10% after then-CEO Steve Ballmer stepped down. There was also a significant increase in the shares of the company as their stocks rallied by 65% after Satya Nadella was named as their new CEO in February 2014.
Nadella, just recently, has made the decision and is probably one of the biggest acquisitions by Microsoft, to acquire the professional networking site with 433 million users LinkedIn for a price of $26.2 billion. One of their biggest deals compared to their purchase of Nokia back in 2007 for $7.2 billion. The purchase of the site allowed Microsoft to connect to a wider set of professional audience to whom they can offer their Office line.
Surface Pro 4 and Azure
Just very recently, Microsoft released an ad for their latest hybrid device with the portability features and the versatility of a full computer.
The company even claims directly through the ad that the Surface Pro 4 is better than Apple’s Macbook Air. A direct comparison was done stating that the Surface Pro 4 has the potential of “full computer” from Apple’s so-called alternatives.
The product also features a detachable keyboard that turns into a portable tablet and a stylus.
Microsoft’s Surface Pro 4 so far has been getting a stream of positive reviews after the previous versions of the Surface tablets has been received quite unwelcome by the public and its weak market performance in the previous years. One incident was when Microsoft slashed the price of the Surface from its original selling price of $499 down to $350.
The company’s own public cloud platform has now shown a 102% quarterly growth leading the total revenue to another $6.7 billion.
The company’s stock price declined the last session with a -.24%. A look at the quarter will show a decline in sales while there has been a healthy operation margin at 23.7%. Their net margins also have increased compared to the past year and has a healthy operating cash flow of $8.46 billion. The company’s return on equity is also positive at 21.6%.
The company, which is now believed to be nearing its highest peak similar to that of 1999, will soon reach it provided there is a continued growth of its software especially its cloud which is the Azure. One of its major competitors is set to release some new products this coming September and as long as there is no direct threat that might ruin all the Surface Pro 4’s potential, the chances are positive. Investors must be on the lookout for possible layoffs or measures that will increase the company’s spending on production and development. Any success rate of the Surface Pro 4 might result in the company venturing further into the producing hardware which might be risky since the acquisition of Nokia has not impressed a large chunk of the market.
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