I'm a Believer in Microsoft's New CEO
NEW YORK (TheStreet) -Facebook's (FB - Get Report) ten year anniversary dominated news in the technology world today. I clearly remember joining thefacebook.com as a freshman at Harvard in 2004. The company has been able to benefit from a share price increase to $63 from its $38 IPO price in May of 2012 by embracing social, mobile and cloud.
Many investors are disappointed by the appointment of an insider for a company that needs change. Of course, there was originally much hype about an outsider coming in, including Ford's (F) Alan Mulally.
So why am I positive on this insider?
1) Nadella is from the enterprise and cloud side of the business. Remember corporate (60% of Windows revenue) is the key driver and Windows 8 disappointment (consumer) isnt as meaningful given the shift to cloud at the Microsoft Business Division and Server & Tools. The cloud and subscription product families (Office 365 SaaS, Office 365 desktop subscription, Azure and Dynamics) don't get enough credit right here.
2) Nadella recognizes that change is needed. Check out his first note to employees. Key quote? "Our industry does not respect tradition - it only respects innovation."
3) The latest quarters have shown marked improvement! Let's continue the momentum.
I think Microsoft is well positioned here, particularly with Bill Gates getting his hands dirty a bit more in a new Technical Advisor role. With the CEO search overhang in the rearview mirror, I think Microsoft can get to work.
>Contact by Email.