This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Growth and Value Too Much to Expect From Microsoft

NEW YORK ( TheStreet) -- TheStreet columnist Rocco Pendola continues to get slammed for offering his 10-year outlook yesterday on  Microsoft  (MSFT - Get Report). You may not have liked Rocco's straight-to-the-point delivery style, but was he completely off base?

I still recall the excitement and high-fives when Steve Ballmer announced he was stepping down as CEO. Immediately the stock shot up by as much as 10% on seven-times the volume.

Critics had finally gotten their wish. The Street never cared for Ballmer, and made no secret of it. Ballmer, in my opinion, was the biggest impediment to Microsoft's growth. Microsoft's board soon came to this conclusion.

In fairness to Ballmer, he never received the credit he deserved for strategically positioning Microsoft in areas like enterprise software and services. As bad as things may have seemed at times, Microsoft's "death" was always exaggerated.

Fairly or unfairly, what people will remember the most are Ballmer's failures in the mobile realm, particularly against Apple (AAPL) and Google (GOOG). And that's when they're not bringing up the fact that Microsoft lost roughly half of its value on his watch.

None of this matters today. Ballmer's legacy is already scripted and there won't be any edits. But that doesn't mean Microsoft will be in any better shape going forward. There are still deficits the company must overcome. Not to mention, considerable execution risk.

The Street should know by now that turnaround stories are hard. This is regardless of how much you want to love a company. New CEO Satya Nadella has said all of the right things. Nadella has also begun to reorganize the structure of his leadership, including creating room for Stephen Elop, the former boss of Nokia (NOK).

It is believed that Elop will assume the top position of Microsoft's Devices and Studios segment. Given Elop's experience with Nokia, this move makes sense. But Elop certainly wasn't a pillar of success at Nokia. Now he's coming on board to help close Microsoft $7.2 billion buyout of Nokia's handset division - a deal he brokered for Nokia as CEO.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
MSFT $44.37 -1.97%
AAPL $124.53 -1.75%
FB $85.80 -2.51%
GOOG $521.52 -1.91%
TSLA $262.02 -1.90%

Markets

DOW 17,596.35 -350.33 -1.95%
S&P 500 2,057.64 -43.85 -2.09%
NASDAQ 4,958.4680 -122.0370 -2.40%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs