Microsoft nears $40 after Office iPad report; Xbox product chief leaving


Microsoft's (MSFT +4.1%) reported plans to unveil Office iPad apps on March 27 are not only "directionally positive" for driving Office 365 demand, but are likely part of a broader effort by Satya Nadella to reposition Microsoft as a "mobile first/cloud first company" thinks Nomura's Rick Sherlund, bullish as ever.

Shares have made new post-Dot.com bubble highs, and are within striking distance of $40.

The iPad accounted for roughly a third of Q4 tablet shipments, but (from all indications) its enterprise share is much higher. ZDNet's Mary Jo Foley observes the iPad Office apps appear set to arrive before Microsoft's touch-friendly Gemini Office Windows apps (expected later this year).

Separately, Xbox chief product officer and long-time Xbox Live chief Marc Whitten has announced he's leaving to become the product chief of home audio system maker Sonos. Xbox division chief Don Mattrick left last year to become the CEO of Zynga, and another key Xbox exec, Blair Westlake, departed in January in response to the 2013 reorg.

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Comments (13)
  • inside man 55
    , contributor
    Comments (1325) | Send Message
     
    Amazing what a transformation Satya has already made in one month. I believe he was the right choice.
    18 Mar 2014, 11:58 AM Reply Like
  • newnnly
    , contributor
    Comments (325) | Send Message
     
    I suspect Satya Nadella will have a lot more positive surprises for MSFT investors.
    18 Mar 2014, 05:59 PM Reply Like
  • QEisGovtFraud
    , contributor
    Comments (16) | Send Message
     
    What's been transformed? The tablet/mobile business is bordering on antiquation and for Satya to make a 'splash' with something that's doesn't merit much, it's comical the stock inflated 5% when nothing has changed for MSFT other than entering a space which should have been entered 5 years ago. If this was truly news worthy, the stock would have opened more than $0.21 higher. Price action here seems consistent with people who are long the stock using this development as an intraday opportunity to try to push the stock higher.
    18 Mar 2014, 12:30 PM Reply Like
  • inside man 55
    , contributor
    Comments (1325) | Send Message
     
    not sure what tablet/mobile business is bordering on antiquation? Android and Apple don't sell a bunch of tablets and phones?? Absurd. If you are talking about Surface and Nokia's D&S equally absurd. As we speak Microsoft is almost $1.45 higher on the day.

     

    No, it signifies a change in philosophy. Go where the customers are and give them what they want, what Microsoft used to do. Satya could have easily killed it. Apple is making inroads into Enterprise, and Enterprise has wanted Office. Microsoft sells more Office 365 subscriptions using the iPad as the delivery vehicle, makes more money and profit. That means the stock is worth more. Makes sense to me.
    18 Mar 2014, 12:52 PM Reply Like
  • $vix
    , contributor
    Comments (619) | Send Message
     
    I'm sure this was not an easy decision for msft. I use both the ipad air and the Surface Pro 2. The 2 is an extraordinary device which has allowed me to give up the laptop.
    However, there are times that the Air is just more convenient to take. It will be great to have word, excel and access on the iPad.
    I believe there are a lot of iPad users who will buy office for iPad and I also believe that there are a lot of consumers who didnt buy an iPad because it didn't run office. This may turn out to be a boon for both msft in terms of office sales and aapl in terms of iPad sales.
    Only time will tell if this was a good idea.
    In terms of the stock price, it has lagged even though in the face of a pc decline, msft has continued to grow revenue in the 14% - 16% range yoy. Thats phenominal for a co. the size of msft. There are a lot of hedge funds that are looking for something in msft to get excited about. If new management can get some momentum, it would be just the excuse the hedges need to get into the stock in a big way. While msft is overbought on a long term chart, a pullback could be an opportunity. It could easily double from here.
    18 Mar 2014, 01:08 PM Reply Like
  • KIA Investment Research
    , contributor
    Comments (12817) | Send Message
     
    " The tablet/mobile business is bordering on antiquation "

     

    Good one!
    18 Mar 2014, 07:08 PM Reply Like
  • theo_rhetoric
    , contributor
    Comments (244) | Send Message
     
    How could such bloated apps ever be successfully ported to an iPad. MSFT last ported their office apps for Mac about five years ago and they were terrible. Apple iWork apps don't have the programmability of Office but they do most things well, they're already cloud based and FREE!
    18 Mar 2014, 01:36 PM Reply Like
  • Value Growth Investor
    , contributor
    Comments (195) | Send Message
     
    I have been using Apple's Pages and Numbers on my iPad to replace MS Word and Excel since they are free. They are not as fancy as Word and Excel, but they are very easy to use and simple. I doubt that I will buy MS Office for iPad unless it is very good.
    18 Mar 2014, 01:56 PM Reply Like
  • financeminister
    , contributor
    Comments (1172) | Send Message
     
    So now we get an idea about when AAPL will reach $700 again. http://seekingalpha.co...
    18 Mar 2014, 11:09 PM Reply Like
  • wil3714
    , contributor
    Comments (2264) | Send Message
     
    nevuary
    19 Mar 2014, 09:33 AM Reply Like
  • newnnly
    , contributor
    Comments (325) | Send Message
     
    nevuary. LOL. That's funny wil3714. I'm still laughing because my brother owns AAPL and it's the only stock he owns. Poor fella.
    20 Mar 2014, 07:10 PM Reply Like
  • wil3714
    , contributor
    Comments (2264) | Send Message
     
    aapl will never move above $600 wihtout something drastic since 10% rev would need to generate close to $20B. A watch or tv wont even move the chains, tell him to buy goog msft bbry instead
    21 Mar 2014, 01:48 AM Reply Like
  • Transcripts&10-K's
    , contributor
    Comments (1208) | Send Message
     
    Back above $40 in well over a decade; been a fantastic investment from the crazy mid-high 20's of a few years ago!
    20 Mar 2014, 12:05 PM Reply Like
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