Software

Try Jim Cramer's Action Alerts PLUS
CLICK HERE NOW

Microsoft Lost in Space

04/28/06 - 02:57 PM EDT

Bill Snyder

"They had no choice," he said in an interview. "They missed search; they missed music; they are in danger of losing control of the desktop."

One New York-based hedge fund manager sold his position in Microsoft about a month ago, not because he anticipated Thursday's results but because "we finally decided we might as well put our tech investments where will get more value."

Asked if the company's new direction encourages him to reconsider, he said it wouldn't. "How do investors know [the heavy spending] isn't just a black hole?"

Although Microsoft was vague about how it will spend the extra money, most analysts say the lion's share will go to Internet-related ventures.

"Ballmer and Gates and those guys look at GoogleGOOG and Yahoo!YHOO, and say 'Why aren't we doing that?'" says Matt Rosoff, an analyst with Directions on Microsoft.

Until recently, Microsoft was unclear on the online business model, he said. "Now they are clear, and it's advertising."

Rosoff says Microsoft will pour money into its Ad Center -- a platform for paid search results -- beef up the long underfunded MSN, even build a data center in eastern Washington to handle increased Web traffic.




1 2
» Next

Headlines & Perspectives

Software

Go To Section Home


04/28/06
Patience Running Out for Microsoft

Shares plunge 11% on last night's earnings and outlook.


04/27/06
Microsoft Takes the Long View

Third-quarter results and the '07 outlook fall short of expectations, but it's investing in growth areas.


04/27/06
Affiliated Computer's Profit Slumps

Restructuring takes its toll.


05/19/08
Cramer on Top Searched Stocks: Yahoo!

Yahoo! is among the most searched stocks on TheStreet.com. Here's what Cramer had to say about the stock recently.


05/17/08
Jim Cramer's Best Blogs

Catch up on his thinking on the hottest topics of the past week.


04/26/08
Coming Week: Make or Break

Investors will have to deal with a Fed meeting and another flood of earnings and economic data.


05/19/08
Top Rocket Stocks: Ensco

Ensco International and Echelon have the potential to move higher in coming days.


04/28/08
Monday's Analysts' Upgrades, Downgrades

See who made what calls.


05/19/08
Telecom Giants See a Savior in Video

The addition of video is helping telecom companies compete against cable and satellite companies.


05/19/08
Contract Expiration Tempers Oil's Rise

The June West Texas Intermediate contract reflects selling pressure ahead of Tuesday's expiration. But stocks in the sector are generally trading higher.


05/19/08
Analysts' Upgrades, Downgrades: Amazon

See who made what calls.


Your Recent Quotes: Quote Up0 | Quote Down0
Dow S&P 500 NASDAQ
Oil*
Gold
10 Yr
0.00%
%
%
%
Data delayed 20 min
Sign up for our FREE newsletters now.

Keep on top of the market and the critical information you need to make more profitable investing decisions.

  • Cramer's Daily Booyah!
  • Before the Bell

Privacy Policy

See All Free Newsletters

Premium Stock Ideas
Access Action Alerts Plus to find out Cramer’s latest picks now!