The layoffs will close a former Nokia research and development unit in Oulu that currently employs 500 people according to Reuters. The remaining cuts to the Nokia unit will come from other teams across Finland. The Nokia layoffs are part of a plan that may exceed the record 5,800 layoffs Microsoft made in 2009.
A positive note from Morgan Stanley analyst Keith Weiss may also be contributing to Microsoft's gains. Weiss wrote that "The elevated execution risk around restructuring, new business models and large acquisitions now balances the potential reward of several potential catalysts, including; 1) improving PC unit growth, 2) outperformance in the commercial licensing and devices divisions, 3) increasing exposure of the Cloud businesses and 4) increasing dividend or share buyback."
Must read: Warren Buffett's 25 Favorite Stocks
TheStreet Ratings team rates MICROSOFT CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate MICROSOFT CORP (MSFT) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity, reasonable valuation levels, solid stock price performance and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income."