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Five Years of Ballmer -- the Effect on Microsoft
An anonymous reader writes "In the five years since Bill Gates surprised the technology world by announcing he would give up his title as chief executive at Microsoft to Steve Ballmer, the company has changed significantly. Ballmer is largely credited for tripling the company's cash balance, with sales growing from less than $23 billion in 2000 to $36.8 billion last year. Critics claim that today, we see a much 'gentler' side of Microsoft and Ballmer seems to have received an "A" in Wall Street's eyes."
I haven't noticed this. What with the patent assault they seem to be preparing for.
Monkey boy: mirrors
(Anyone still have that video?)
Hell, yes!
Tedious Bloggy Stuff - hooray?
Beta is broken and the link to classic doesn't work. Stop wasting our time or there won't be anybody left here.
Although there was a split, the price comparison of ca. 50 5 years ago vs. now is split-adjusted. Also, they haven't been paying a dividend over that entire 5 year period and the yield, at current prices, is only a little over 1%. So, even at a P/E of 35, MSFT is overvalued.
Ask me about my vow of silence!
I think they ARE treading water, but I also think you are right that Ballmer is attempting to position MS so that Windows/Office aren't the only options they have for making money. Companies which are dependent on a single product (especially tech companies) run the risk that new technologies will render them irrelevant. The PC demolished the mainframe business, for example. OSS is a real threat to closed source -- which traditionally is all MS has to offer.
Why I claim MS is simply treading water, however, comes down the fact that while MS is trying quite a few new projects to develop additional revenue streams, I don't see any of them really laying a foundation for big growth. The XBox is competitive, but doesn't dominate and is sold as a loss-leader (recouped on games sales). Sony is still a huge threat in consoles, so MS is still on unstable ground there. MSN: is it even profitable? I don't know, but I think it is marginal at best. Media Centers? So far, consumers seem to have no real interest in putting a computer in the entertainment center.
No, Ballmer's trying, but he isn't succeeding. MS still doesn't have any real direction or inspiration. Then again, it's a company that has gotten lethargic because of its monopoly revenue stream. Any tech company that doesn't stay hungry has become prey rather than predator.
Life is short: void the warranty.
Of course, the next question is always "What have they produced?" I don't know. Maybe they have produced something, maybe they are getting ready to, who knows?
Not that hard...research.microsoft.com, maybe? Here, some more useful information.