Microsoft Corporation (MSFT) - NASDAQ
  • Wed, Jul. 20, 2:51 PM
    • Nomura Securities restates a Buy rating on Microsoft (MSFT +6.3%) with a $65 price target (current price $56.60).
    • BMO Capital Markets restates an Outperform rating and a raised price target, $62 up from $57 and forecasts a free cash flow increase between 5-8% Y/Y over the next two years.
    • FBN Securities similarly raises its price target, $65 up from $55, and maintains an Outperform rating citing 109% and 59% revenue growth in cloud assets Azure and Office 365 Commercial, respectively.
    • Citi, not as impressed by the report. raises its price target to $40 from $37 but continues to maintain a Sell rating. Citi analyst Walter Pritchard is more concerned with sliding trend figures in Productivity and Business Process, commercial bookings and operating income as opposed to the company's touted cloud growth. Pritchard attributes lower-than-anticipated tax rates to the positive numbers and sees $5B in upcoming investment proceeds as contributing to boosted future earnings calls as well.
    | Wed, Jul. 20, 2:51 PM | 4 Comments
  • Wed, Jul. 20, 1:41 PM
    • Hot on yesterday's earnings release, Microsoft (MSFT +6.7%) announces its new Bookings service, an application customers can use to schedule appointments with businesses.
    • Businesses will have a unique web location where all communication and actions involving making an appointment will transpire.
    • Features confirmation, reminder, rescheduling and cancellation capabilities.
    • The service is in First Release presently for Office 365 Business Premium subscribers and will become available to Business Premium subscribers in upcoming months.
    | Wed, Jul. 20, 1:41 PM | 5 Comments
  • Tue, Jul. 19, 5:36 PM
    | Tue, Jul. 19, 5:36 PM | 5 Comments
  • Tue, Jul. 19, 5:08 PM
    • Reported $0.69 EPS vs. $0.58 expected and revenue of $22.6B vs. $22.1B expected.
    • Office 365 commercial revenue growth saw an increase of 54% while Office consumer products and cloud services revenue saw a 19% increase.
    • 23.1M Office 365 consumer subscribers.
    • Revenue for Azure, the company's enterprise cloud platform, increased by 102% with double the compute usage Y/Y.
    • Revenue derived from Surface devices grew 9%, citing Surface Pro 4 and Surface Book as catalysts.
    • Mobile phone revenue plummeted 71%.
    • MAUs for Xbox Live grew to 49M, a 33% increase Y/Y.
    • From CEO Satya Nadella: "This past year was pivotal in both our own transformation and in partnering with our customers who are navigating their own digital transformations. The Microsoft Cloud is seeing significant customer momentum and we’re well positioned to reach new opportunities in the year ahead."
    • With the company conceding last Friday it would not meet its own self imposed deadline to have Windows 10 running on 1B active devices, today's report further highlights Microsoft's transition from traditional software sales models to an increasing focus on cloud platforms and services.
    • Full release.
    • Conference call at 5:30 ET.
    • Presentation slides.
    • MSFT +2.95% in after hours trading.
    | Tue, Jul. 19, 5:08 PM | 29 Comments
  • Tue, Jul. 19, 4:09 PM
    • Microsoft (NASDAQ:MSFT): FQ4 EPS of $0.69 beats by $0.11.
    • Revenue of $22.6B (+1.9% Y/Y) beats by $460M.
    • Shares +4%.
    • Press Release
    | Tue, Jul. 19, 4:09 PM | 81 Comments
  • Mon, Jun. 13, 8:53 AM
    • Microsoft (NASDAQ:MSFT) will fund the deal mostly by issuing debt, with LinkedIn's (NYSE:LNKD) results to be reported as part of MSFT's Productivity and Business Processes segment. EPS is expected to take a minimal hit in fiscals 2017 and 2018, but the deal should become accretive beginning in fiscal 2019.
    • The purchase is expected to close this year.
    • Microsoft still intends to complete its current $40B buyback plan by year-end.
    • Jeff Weiner will remain CEO of LinkedIn, reporting to Microsoft chief Satya Nadella.
    • Nadella: "Together we can accelerate the growth of LinkedIn, as well as Microsoft Office 365 and Dynamics as we seek to empower every person and organization on the planet.”
    • A conference call is scheduled for 11:45 ET.
    • LNKD remains higher by 48.4% to $194.49. Reopened for trade, MSFT is lower by 3.6%.
    • Previously: Microsoft buys LinkedIn for $26.2B (June 13)
    • Twitter next? TWTR is higher by 4% premarket.
    | Mon, Jun. 13, 8:53 AM | 62 Comments
  • Mon, Jun. 13, 8:40 AM
    • The all-cash deal for LinkedIn (NYSE:LNKD) works out to $196 per share.
    • LinkedIn is higher by 49% premarket to $194.89. MSFT is halted from trade.
    | Mon, Jun. 13, 8:40 AM | 180 Comments
  • Wed, Jun. 1, 2:07 PM
    • Microsoft's (NASDAQ:MSFT) Windows Holographic software platform, which underpins the company's HoloLens augmented reality (AR) headset, is being opened up to third-party hardware firms, with the goal of creating an ecosystem of "PCs, displays, accessories, and mixed reality devices."
    • By "mixed reality," Microsoft is talking not only about the kind of AR experiences enabled by HoloLens, but also solutions that can deliver both VR and AR experiences. "Imagine wearing a VR device and seeing your physical hands as you manipulate an object, working on the scanned 3D image of a real object, or bringing in a holographic representation of another person into your virtual world so you can collaborate. In this world, devices can spatially map your environment wherever you are; manipulating digital content is as easy and natural as picking up a box or sitting at a table; and you can easily teleport into your next meeting or travel together as a team."
    • Dell, HP, Intel, Qualcomm, Lenovo, AMD, and HTC are among Microsoft's initial Windows Holographic partners. For now, Facebook's Oculus unit, which Microsoft has partnered with to support the playback of Xbox One games on Oculus Rift VR headsets connected to Windows 10 PCs, isn't on the list.
    • Himax (HIMX +5.2%), which has developed microdisplays, wafer-level optics solutions, and display driver ICs for VR/AR headsets, has rallied following Microsoft's announcement. For the time being, VR/AR products account for a small percentage of Himax's revenue.
    | Wed, Jun. 1, 2:07 PM | 4 Comments
  • Fri, May 27, 1:53 PM
    • Sources tell dealReporter P-E firm Vista Equity is close to an agreement to buy Marketo (MKTO +6.7%), and that a deal could be announced in the "next couple " of weeks.
    • The site adds Marketo's lack of profits limited buyout interest, and that Vista will have to show it can deliver major cost cuts to secure debt financing for the deal.
    • Marketo surged earlier this month on reports the company is exploring a sale. There had been speculation Microsoft (NASDAQ:MSFT) and/or SAP - each of which could use Marketo's cloud marketing automation software to fill out their cloud CRM software lines and better compete against Oracle/Salesforce - would bid for the company.
    • Shares are up 43% since the reports arrived on May 10. If Vista buys Marketo, Microsoft/SAP buyout speculation could turn towards rival HubSpot (HUBS +0.8%).
    | Fri, May 27, 1:53 PM
  • Tue, May 10, 4:12 PM
    • Reacting to news of a possible sale of Marketo (NASDAQ:MKTO) -- which just closed up 24.7% after spiking 15% on earlier chatter -- Credit Suisse believes SAP is the most likely acquirer.
    • Several vendors are still missing critical CRM components, the firm says, and Microsoft (NASDAQ:MSFT) is a potential bidder as well.
    • Acquisitions in the cloud sector have tended to focus on the multiples of enterprise value to the last-12-months subscription revenues, it says.
    • Modeling several acquisitions over the past year and applying that multiple to Marketo ($198.9M in last-12-months sub revenue, and revenue growth of 38.1%) brings a share price of $44.35 -- 65.7% upside from the just-inflated closing price. Applying a standard error to the multiple brings a warranted price range of $37.03-$51.67 (38% to 93% upside).
    • Now read Competition The Issue As Marketo Pivots To Enterprise »
    | Tue, May 10, 4:12 PM | 11 Comments
  • Tue, May 10, 2:48 PM
    • Marketo (NASDAQ:MKTO) has resumed trading after a volatility halt, spiking up 15.5% on reports that it's considering strategic options, including a possible sale of the company.
    • Shares had moved in early April on similar talk, possibly with acquisition interest from Microsoft or SAP.
    • Later last month, Bernstein speculated that most likely acquirers were SAP, Adobe (NASDAQ:ADBE) and Microsoft (NASDAQ:MSFT).
    • Now read Competition The Issue As Marketo Pivots To Enterprise »
    • »
    | Tue, May 10, 2:48 PM
  • Fri, Apr. 22, 9:57 AM
    • Tech peace in our time? Microsoft (MSFT -7.3%) and Google (GOOG -4.8%, GOOGL -5.3%) have agreed to drop the regulatory complaints they have against each other, on a global basis.
    • There's no product commitments in the deal, but it may help relieve headaches such as the one Google is facing with the EU's case against Android.
    • “Microsoft has agreed to withdraw its regulatory complaints against Google, reflecting our changing legal priorities,” that company tells Re/code.
    • Google: “Our companies compete vigorously, but we want to do so on the merits of our products, not in legal proceedings.”
    • Now read Alphabet: Sunk By Hidden Costs »
    | Fri, Apr. 22, 9:57 AM | 10 Comments
  • Fri, Apr. 22, 9:13 AM
    | Fri, Apr. 22, 9:13 AM
  • Thu, Apr. 21, 6:05 PM
    • Microsoft (NASDAQ:MSFT) is now down 5% after hours, during an earnings call where the company's guiding on the low side of revenue expectations.
    • The company expects fiscal Q4 revenues of $21.7B-$22.4B, vs. consensus for $23.1B. Guidance by segment: Productivity and business processes, $6.5B-$6.7B; Intelligent cloud, $6.5B-$6.7B; More Personal Computing, $8.7B-$9B.
    • The company's shares fell postmarket shortly after announcing its miss on profits. CFO Amy Hood says the company would have beaten analyst estimates if not for tax expenses (A non-GAAP tax rate of 24% vs. the company's guidance for 20% can be seen as a $0.04 hit to EPS). Hood said full-year expectations for tax rate are now 20-21%.
    • CEO Satya Nadella painted a picture of a company that is moving more rapidly (rapidly enough?) into the cloud as the worst quarterly PC numbers since 2007 held down Windows. Windows 10 is running on more than 270M devices now, and the company says it's on track to meet its promise of 1B within 2-3 years.
    • Overall most markets performed as anticipated, Hood said, but "Latin America, the Middle East and Africa were more unfavorable than expected."
    • Phone revenues fell 46%, while Surface tablet sales grew 61%. Unearned revenue was $25.9B, higher than $24.8B expected by analysts polled by Bloomberg.
    • Conference call link
    • Fiscal Q3 earnings slides
    • Press release
    • Now read The Wearables Revolution: Microsoft's HoloLens »
    | Thu, Apr. 21, 6:05 PM | 13 Comments
  • Thu, Apr. 21, 4:34 PM
    • Microsoft (NASDAQ:MSFT) has slipped 5% after hours after it missed profit expectations slightly and revenue fell 5.5% on a GAAP basis, amid currency headwinds and a continuing weak PC market.
    • Commercial cloud annualized revenue run rate has surpassed $10B, it said. Revenue by segment (GAAP terms): Productivity and Business Process, $6.522B (up 1%); Intelligent Cloud, $6.096B (up 3%); More Personal Computing, $9.45B (up 1%).
    • Cloud gains were 8% in constant currency and Azure revenue grew 120% in those terms; usage of Azure compute and SQL database more than doubled. Server products and cloud services revenue was up 5% ex-forex.
    • Meanwhile, Windows OEM revenue fell 2% ex-forex. In Productivity and Business Processes, Office commercial products/cloud services revenue grew 7% (Office 365 up 63%), and consumer products/cloud service was up 6% (Office 365 consumer subs up to 22.2M).
    • Income tax expense had a catch-up adjustment due to a changing geographic mix, and the company's GAAP tax rate was 25% (24% non-GAAP).
    • The company should provide guidance on its conference call, set to begin at 5:30 p.m. ET.
    • Press release
    • Now read The Wearables Revolution: Microsoft's HoloLens »
    | Thu, Apr. 21, 4:34 PM | 34 Comments
  • Wed, Apr. 20, 9:28 PM
    • It looks increasingly like videogame console combatants Sony (SNE +4.4%) and Microsoft (MSFT -1.4%) will go for a mid-line chip refresh to their current-generation hardware, in order to juice margins and fight mobile competition.
    • Rumors of an upgraded Xbox One may get new credence after Microsoft announced an end to production on its older-gen Xbox 360, which could free up a lot of resources for more productive use.
    • Meanwhile, a "PlayStation 4.5" or "PlayStation Neo" is rumored as well. But while the older-gen systems got upgrades in hard drives, storage is plentiful now, so the new focus may be on a processor upgrade -- providing potential power for virtual reality and 4K, for example.
    • The motivation is an old one: keeping the $300-$500 price points and maximizing console revenues. Console sales have been in decline, mainly due to price cuts by the competitors.
    • Now read Virtual Reality To Give Further Boost To Sony In 2016-17 »
    | Wed, Apr. 20, 9:28 PM | 5 Comments
Company Description
Microsoft Corp. develops and markets software, services and hardware that deliver new opportunities, greater convenience and enhanced value to people's lives. The company's products include operating systems for computing devices, servers, phones, and other intelligent devices; server... More
Sector: Technology
Industry: Application Software
Country: United States