Facebook Can't Save The Decline of Microsoft

Here are my thoughts on the Microsoft (MSFT) investment in Facebook.

20 years ago the company’s operating systems burst on the scene and helped to launch the desktop computing revolution. In the process, it became a virtual monopoly. MSFT was the hunted and the rest of technology were the hunters.

Now 20 years later, Google (GOOG) and Apple (AAPL) have emerged to be the leading edge of technology as MSFT is still trapped in its Windows mindset. MSFT is now the hunter and no longer the hunted. The Zune is a joke. XBOX is an industry laggard. Any attempt to cut in on iPhone by MSFT will likely be a failure.

The leadership at MSFT is rusty at best. Bill Gates is too focused on social issues and playing cards with Warren Buffett.

The small investment in Facebook will not generate any meaningful benefit to MSFT. In the end, buying MSFT based on this news is a giant mistake.

Disclosure: At the time of this entry, Scott Rothbort, his family and or clients of LakeView Asset Management, LLC were long shares of AAPL and GOOG.

Comments

[MarcelMcSweeney]

[Comment edited for abusive language. Commenter put on watch.]

[teckel]

There was no abusive language here! This is censorship simply because someone doesn't like getting his face rubbed in the 10%+ gain in MSFT's stock price in only a day and a half since this uninsightful "The Decline of Microsoft" article was posted. Seeking Alpha should be ashamed that they would censor a simple challenge to an article that obviously has gross inaccuracies and is nothing more than a fanboy trying to pump up stocks that he and his "high net worth individuals" own.

Scott Rothbort is a stock guru. Remember, he used to work for Merrill Lynch, and we all know how good they are at valuation! I'm sure "high net worth individuals" are lined up outside LakeView Asset Management's doors right now demanding he use his God-like valuation stills he learned while at Merrill Lynch and his insightful business and stock market skills to invest their money. Scott Rothbort's ignorance of MSFT, the stock market, and business in general is only out shadowed by his fanboyism of GOOG and AAPL. And, "ignorance" is not abusive. It simply means that Scott Rothbort lacks knowledge of MSFT (which is obvious). Scott Rothbort should remember that ignorance can be resolved, stupid is forever. It's up to him to choose which path he wants to take.

Go ahead, delete this as well for "abusive language", as we both know there isn't abusive language here. Maybe abrasive, but not abusive. I have my own web servers, domains, can create an unlimited number of email addresses, and have a proxy server list a mile long so I can post here forever if I choose to. Seeking Alpha needs to consider if they want to tolerate a calm debate on an inaccurate article like this or they want to start an all-out posting and censorship war which will consume an immeasurable amount of time to manage. I'm retired, have unlimited time, and always looking for a cause, your choice!

[Mannib]

Does your Company Have a Market Cap of $300 Billion?? If so you are a genius! Also if I were worth $60 Billion I would be playing cards with Buffett also On Valium and Martinis. [Comment edited for abusive language. Commenter put on watch.]

[teckel]

[Comment edited for abusive language. Commenter put on watch.]

[teckel]

There was no abusive language here! This is censorship simply because someone doesn't like getting his face rubbed in the 10%+ gain in MSFT's stock price in only a day and a half since this uninsightful "The Decline of Microsoft" article was posted. Seeking Alpha should be ashamed that they would censor a simple challenge to an article that obviously has gross inaccuracies and is nothing more than a fanboy trying to pump up stocks that he and his "high net worth individuals" own.

Scott Rothbort is a stock guru. Remember, he used to work for Merrill Lynch, and we all know how good they are at valuation! I'm sure "high net worth individuals" are lined up outside LakeView Asset Management's doors right now demanding he use his God-like valuation stills he learned while at Merrill Lynch and his insightful business and stock market skills to invest their money. Scott Rothbort's ignorance of MSFT, the stock market, and business in general is only out shadowed by his fanboyism of GOOG and AAPL. And, "ignorance" is not abusive. It simply means that Scott Rothbort lacks knowledge of MSFT (which is obvious). Scott Rothbort should remember that ignorance can be resolved, stupid is forever. It's up to him to choose which path he wants to take.

Go ahead, delete this as well for "abusive language", as we both know there isn't abusive language here. Maybe abrasive, but not abusive. I have my own web servers, domains, can create an unlimited number of email addresses, and have a proxy server list a mile long so I can post here forever if I choose to. Seeking Alpha needs to consider if they want to tolerate a calm debate on an inaccurate article like this or they want to start an all-out posting and censorship war which will consume an immeasurable amount of time to manage. I'm retired, have unlimited time, and always looking for a cause, your choice!

[teckel]

1) MSFT already beat the iPhone, years ago. Maybe you don't know about all the phones with the mobile version of Windows? It's a more mature OS, not locked like the iPhone, tons of 3rd party programs, loads of options on phones and cellular companies, sold around the world, and sold a LOT more than the iPhone. Over 11 million Windows smart phones were sold in the previous 12 months when MSFT announced numbers in July of 2007. Less than 2 million iPhones have been sold. Further, Windows Mobile has a larger market share than both RIM Blackberry and Palm.

2) The Xbox 360 has all but won against Sony in only their second attempt. The Wii was a bit of a surprise, but Nintendo has long held the kiddie market (tweens) while the Xbox is for the 16+ age group. Actually, the Wii and the Xbox 360 are not really direct competitors for this reason. To call the Xbox 360 laggard is to call yourself ignorant of the facts. We're even seeing 360 sales topping the Wii now with Halo 3 out, new console options for the 360, and the holiday season approaching.

3) Bill Gates doesn't run MSFT anymore, so he can play cards with Warren Buffet all he wants for all I care.

4) Your thoughts on MSFT not not thoughts at all as there was no thought in them. They're emotionally based on your disclosure, that you're long on AAPL and GOOG. I'm long on AAPL, GOOG, and MSFT as I don't see them as direct competition as you do. For the most part, they generate profit from totally different things. While they step on each other's toes and get into each other's business, it doesn't hurt the bottom line. Zune sales don't hurt AAPL, OS X sales don't hurt MSFT, Google search doesn't hurt MSFT. The competition yields a better product for the consumer, which results in more sales, and more profit for all. All three can make money hand over fist, there's no reason to choose a side, go long on all 3.

5) MSFT hating is *so* old and *so* easy.

[schmidty]

OK, GOOG/AAPL fanboy. I'm sure if GOOG had won this deal for even more money you'd be saying how it was the final stake in Microsoft's coffin.

How can you say Xbox is an industry laggard? It's set the bar for online gaming and it already outselling PS3. Wii is a nice console and has had incredible success, but its attach rate (look it up, because I'm suspect you have no idea what it is) is lower and expected to stay low with Xbox beginning to outsell in the near future.

The more frequent emergence of vapid articles like this one convinces me it's nearing the time to put a long MSFT, short AAPL/GOOG bet on.

[teckel]

Feel the love!

[Tom B]

Remember how MSFT ruined HotMail? They'll ruin Facebook, too. Like Murdoch ruined MySpace.

[wow]

[Comment edited for abusive language. Commenter put on watch.]

[teckel]

And he writes this the same day that MSFT reports earnings where revenue rose 27%, net earnings per share increased 29%, they beat earning estimates by 15%, and they raised their revenue outlook for all five business segments by 12 to 13 percent.

I want this guy managing my money! Is it just me or can everyone hear that sucking sound?

[teckel]

There was no abusive language here! This is censorship simply because someone doesn't like getting his face rubbed in the 10%+ gain in MSFT's stock price in only a day and a half since this uninsightful "The Decline of Microsoft" article was posted. Seeking Alpha should be ashamed that they would censor a simple challenge to an article that obviously has gross inaccuracies and is nothing more than a fanboy trying to pump up stocks that he and his "high net worth individuals" own.

Scott Rothbort is a stock guru. Remember, he used to work for Merrill Lynch, and we all know how good they are at valuation! I'm sure "high net worth individuals" are lined up outside LakeView Asset Management's doors right now demanding he use his God-like valuation stills he learned while at Merrill Lynch and his insightful business and stock market skills to invest their money. Scott Rothbort's ignorance of MSFT, the stock market, and business in general is only out shadowed by his fanboyism of GOOG and AAPL. And, "ignorance" is not abusive. It simply means that Scott Rothbort lacks knowledge of MSFT (which is obvious). Scott Rothbort should remember that ignorance can be resolved, stupid is forever. It's up to him to choose which path he wants to take.

Go ahead, delete this as well for "abusive language", as we both know there isn't abusive language here. Maybe abrasive, but not abusive. I have my own web servers, domains, can create an unlimited number of email addresses, and have a proxy server list a mile long so I can post here forever if I choose to. Seeking Alpha needs to consider if they want to tolerate a calm debate on an inaccurate article like this or they want to start an all-out posting and censorship war which will consume an immeasurable amount of time to manage. I'm retired, have unlimited time, and always looking for a cause, your choice!

[teckel]

Hahaha! He's taken notice of our replies as a crop of "[Comment edited for abusive language. Commenter put on watch.]" have come up! There was no abusive language, unless you call being honest about Scott Rothbort's armature-style stock bashing as abusive.

Actually, considering MSFT is up over 10% since the stock guru Scott Rothbort posted on "The Decline of Microsoft", I would hope he would spew more of this uninsightful MSFT hate rants.

[teckel]

Hahaha! He's taken notice of our replies as a crop of "[Comment edited for abusive language. Commenter put on watch.]" have come up! There was no abusive language, unless you call being honest about Scott Rothbort's armature-style stock bashing as abusive.

Actually, considering MSFT is up over 10% since the stock guru Scott Rothbort posted on "The Decline of Microsoft", I would hope he would spew more of this uninsightful MSFT hate rants.