Microsoft Downgraded On Mobile Concerns

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Shares in Microsoft, Inc. were downgraded Monday by Goldman Sachs analyst Sarah Friar over concerns about the company’s performance in the mobile arena. The investment banking giant downgraded MSFT to a “Neutral” from a “Buy,” and cut the target price on the stock from US$32 per share to $28.

According to BusinessWeek, Goldman Sach’s concern is that Microsoft needs to gain, “a firmer foothold in the growing migration to mobile devices.” Failing that, the company will find it difficult to improve investor sentiment, the firm wrote in a research note.

Though Microsoft posted record revenues and earnings in fiscal 2010, Goldman Sachs doesn’t see a recovery in the mobile market in 2011 because , “Apple’s iPad and iPhone plus Google’s Android operating system are well established.”

On Friday, Microsoft itself revealed concerns about the mobile space in its annual proxy filing with the SEC. In that document, Big Redmond announced that it had given CEO Steve Ballmer half the annual bonus he was eligible for, but that concerns over the failure of the Kin mobile phone and the loss of market share for Windows Mobile resulted in him not getting the other half.

MSFT closed lower Monday at $23.91, a loss of $0.470 (-1.93%), on heavy volume of 96.9 million shares trading hands.


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I’ve ranked MSFT at STRONG SELL ever since Longhorn’s first slip date, er “rescheduling”.  That was the moment it was finally obvious MS was finished.


I think Microsoft’s real problem is a fundamental ignorance of the extent to which mobile technology must be COOL! That’s because people keep it out with them all the time, like their clothes and jewelry. There’s a very personal investment and expression there. And there is no company less cool than Microsoft. “They are so unhip, it’s a wonder their bums don’t fall off” to quote Ford Prefect from Hitchhiker’s Guide to the Galaxy.

How, seriously, can one expect Microsoft to take on Apple and Google? It’s not in their nature.


To borrow, and heavily paraphrase, another gem from “Hitchhiker’s”

They don’t understand the question.


I hope your only talking about ms taking on apple in the phone in. also bberry and symbian are pwning the market. Ms pwns the mac in the pc in. Windows phones are “unhip”? check ou WP7.Research before you write.

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