Forgot your password?
typodupeerror
Microsoft The Almighty Buck Windows

Microsoft Stock Drops 11% In a Day 467

Posted by Soulskill
from the i-see-you-are-having-problems-with-your-investors.-would-you-like-me-to-help? dept.
Taco Cowboy writes with news that Microsoft's stock price dropped over 11 percent yesterday. The selloff was the biggest since 2009, and during the day the price was down more than 12 percent at one point, making it the biggest single day drop since April, 2000. Analysts believe the drop was due primarily to the company missing its quarterly earnings projections in addition to taking a massive, $900 million write-down on unsold Surface RT tablets. "Microsoft’s decline is both a consequence of the changing dynamics of the tech world and the incredible surge in its stock price this year. Shares in the maker of Windows had rallied nearly 30% this year, leaving both the broader stock market and the technology sector in the dust. It was, it seemed, Steve Ballmer’s year. Until Friday. The sell off was sparked by fears over the declines of the PC market. Gartner data show PC shipments fell for the fifth consecutive quarter in Q2, this time tanking 10.9% to 76 million units. Being the world’s largest software company, 'over 80% of its revenue and nearly all of its profits continue to be derived by its ubiquitous Windows OS, its server business (Windows Server), and the business division (Office),' according to UBS. And indeed that decline in the PC industry is hurting the company’s bottom line."
This discussion has been archived. No new comments can be posted.

Microsoft Stock Drops 11% In a Day

Comments Filter:
  • by symbolset (646467) * on Saturday July 20, 2013 @04:54PM (#44338141) Journal
    Microsoft has tons of cash and is making more. Nobody thinks they're going out of business this year. The panic is that they clearly have no viable plan for participating in the mobile revolution. They have lost control of the platform.
    • by kthreadd (1558445)

      Sure they do. All they need to do is port Office to all viable mobile platforms and then they are set.

      • office for linux as well they have an mac one

        • by amiga3D (567632)

          People on Linux that want Microsoft Office already have it. Why would they port it when it's not going to improve their market any?

      • by Threni (635302) on Saturday July 20, 2013 @05:16PM (#44338281)

        Yeah, everyone wants office on their tablets. I do, my daughters and wife do, and just think of how stupid all those iPad users are going to feel when they see cool, cool windows tablets running a cut-down version of the latest version of Office. Excel on a train? No problem. Outlook in a nightclub? Sorted. Word in a park? Job done! I just hope Access works on mobile too - that would be sweet! I'd never leave the house! That'd show those Android using chumps!

        • Ok, let me get this straight... You would use Outlook in a nightclub? Really? Somehow I don't see that as a killer feature...

        • Re: (Score:3, Insightful)

          by geoskd (321194)

          Yeah, everyone wants office on their tablets. I do, my daughters and wife do, and just think of how stupid all those iPad users are going to feel when they see cool, cool windows tablets running a cut-down version of the latest version of Office. Excel on a train? No problem. Outlook in a nightclub? Sorted. Word in a park? Job done! I just hope Access works on mobile too - that would be sweet! I'd never leave the house! That'd show those Android using chumps!

          I think you'll find that a touch interface is simple not really up to the task of content creation. There is no decent workflow at all that involves a touch screen for editing anything. Typing e-mail and texts on a touchscreen is somewhat marginal, and anything more complex than raw text is going to be an exercise in frustration. While I agree that having my phone or tablet capable of doing real work while I'm on the go would be cool, I simply don't see any good way to deal with the lack of rich inputs on a

      • by PCM2 (4486)

        Sure they do. All they need to do is port Office to all viable mobile platforms and then they are set.

        Not as easy as it sounds. Not by a long shot. Have you tried using Office on an 8" Windows tablet? I don't really recommend it.

      • by alen (225700)

        i'm sure lots of people can't wait to pay $300 for a copy of MS Office on their tablet. or $10 per person per month for 365.

    • NSA spying (Score:3, Insightful)

      by Anonymous Coward

      Is probably not helping the companies long term prospects. That said, this earnings report motly reflects a period before Snowden started talking.

    • by Follow Meeee (2990709) on Saturday July 20, 2013 @05:05PM (#44338217)
      Microsoft (and Nokia) have a marketing problem. Nokia Lumia's are actually really great phones and the OS is good, but iPhone has made such a huge name of itself that it is really hard to compete with it. But we should all be happy that they are trying to compete, because competition is good for customers.
    • by gmuslera (3436) on Saturday July 20, 2013 @05:16PM (#44338283) Homepage Journal

      Is about the trust. Their closed platform and their "we respect your privacy" internet services busted badly. Why anyone in the world will put their intelectual property, privacy, business proposals and so on in an environment that leak their information by design? That directly lies their consumers saying that their information is safe because they encrypt them? That will keep remote vulnerabilities intentionally open for a year or more, so can be exploited by NSA and associated private companies?

      The NSA helped more to popularize linux on the desktop than all the open source community with its practices.

    • The Surface is nothing. We lost a full billion on Microsoft Kin. That was at least a full round number.

    • by DogDude (805747) on Saturday July 20, 2013 @05:38PM (#44338427) Homepage
      The panic is that they clearly have no viable plan for participating in the mobile revolution. They have lost control of the platform.

      Windows Phone is growing faster in sales than Android and iOS. I don't think you know what you're talking about.
      • I was under the impression that the only Windows Phone sales were from Nokia, and they (Nokia) aren't doing too well last I heard. Is there a web site with stats on the windows phone sales vs. Android vs. Iphone? I would be curious to see if they (Microsoft) are doing any better.
        • by symbolset (646467) * on Saturday July 20, 2013 @05:59PM (#44338537) Journal

          Windows Phone has 4% global share. 85% of that is from Nokia. Nokia's margins on Windows Phones is -14%. That means it is not mathematically possible for Windows Phone to be returning a profit to the average builder. Nokia can't keep this up forever. Other builders don't sell enough units to make it worthwhile to continue to produce units. All of Windows Phone ecosystem sells about as many smartphones as Coolpad. Have you heard of them? No. Nobody talks about Coolpad, but everybody talks about Windows Phone and Nokia.

          One fun person to read about these with is Tomi Ahonen [blogs.com].

          • by Kjella (173770)

            Windows Phone has 4% global share. 85% of that is from Nokia. Nokia's margins on Windows Phones is -14%. That means it is not mathematically possible for Windows Phone to be returning a profit to the average builder.

            It is mathematically possible if the remaining 15% are sold at 80%+ margin. Realistically possible no, but mathematics have never concerned itself with what is practically possible.

      • by 3dr (169908)

        Going from 1 user to 3 users is indeed a growth rate of 200%, but relying on rate without quantity (measured in absolute units or market share percentage) means nothing.

      • by gmhowell (26755)

        The panic is that they clearly have no viable plan for participating in the mobile revolution. They have lost control of the platform.

        Windows Phone is growing faster in sales than Android and iOS. I don't think you know what you're talking about.

        How are you measuring that? Growing from 1 unit sold to 10 units sold yields a more impressive percent gain than moving from 900,000 units sold to 1,000,000 units sold, but who could argue, straight faced, that it's relevant?

  • by Anonymous Coward on Saturday July 20, 2013 @05:07PM (#44338229)

    HA HA, TIME TO CHANGE THE COMPANY TO HARDWARE AND SERVICES. UH OHHH

    Steve SERIOUSLY fucked up hard.
    I wonder how long it will take for people to vote to kick him out.

    Not only are people NOT buying their hardware, barely anyone is buying their services either.
    Meanwhile their OS and Office apps are still the thing that makes them even exist.
    And the one thing they depend most on, the business types, THEY SHAFT THEM ENTIRELY WITH THE NEW OS.
    Great idea Baldness, great idea. Doing the company proud. And then Technet got killed. Up next, MSDN on the chopping board.
    Not to mention Xbone. I seriously thought the whole 180 reversal on the DRM was some sort of reverse bait and switch, "hey, have our shitty product!", everyone hates it, "HAAA, gotcha, here, but seriously, have our less shitty product! We removed the really good features and the really bad features!".
    They seriously never done that though, they ACTUALLY designed it like that, and after Don was eliminated from the company floors, that further proves it. And the many thousands to million servers they had for Xbone now being touted for Azure instead probably.

    We won't see Microsoft die any time soon, but they will eject the monkey in control if this gets any worse.
    Linux will become more popular on the desktop as more games are moving to it, which will take a large chunk of gamers out of their income.
    Steam already has a decently large number of games supported now, and it is growing.
    People are seeing through Microsofts bullshit, took a while, but finally they are seeing them for what they are.

    • We won't see Microsoft die any time soon, but they will eject the monkey in control if this gets any worse.

      It's already worse. Monkey is staying, thank goodness.

  • by msobkow (48369) on Saturday July 20, 2013 @05:14PM (#44338267) Homepage Journal

    The stock market isn't based on the real value of a company anyhow. It rarely involves evaluating the technical expertise, the research and development, the long term product development plans, the current or future rational profit projections of the company, or anything like that.

    Instead, it's now a bunch of automated systems buying and selling at a furious rate based on statistics and very small margin profits for the trades.

    In other words, legalized gambling with the biggest players gaming the system to their advantage.

    When I think about how solid or worthy a company is, the last thing I consider is their stock price.

    • Yes and Buffet is blowing air up people's arses! Just because you can't find value does not mean that value does not exist! Value exists, but it requires an understanding of business without resorting to biases... This is why people don't make money on the stock market.

      • by DogDude (805747)
        Yes and Buffet is blowing air up people's arses! Just because you can't find value does not mean that value does not exist! Value exists, but it requires an understanding of business without resorting to biases... This is why people don't make money on the stock market.

        Oh, really? What's the mechanism that ties stock price to "value", exactly?
        • by khallow (566160)
          There are several. Net income is one such value. The company can also be valued for its assets. if it's stock market value drops below that, then one can make money merely by buying the business and selling off its assets. The business might be of substantial value to another either because its something well, which the other party needs, or because its removal or absorption increases the market share and pricing power of the second party.
    • Re: (Score:2, Insightful)

      by Anonymous Coward

      Shows what you know. People who do longer-term investing don't much care about short-term volatility since reversal to the mean is still working in their favor.[*] However, when you actually go ahead and make projections for some metrics, like cash flows and rate of growth, you'll see that the current price has funny sensitivities to those. Of course those are models, subject to bias, impossibility of predicting truly innovative products and so on. Still, for large enough companies there is a lot of inertia

    • The stock market is not gambling. Gambling a zero sum game where participants obtain a percentage of the result minus the house take.

      The stock market is a positive sum game, which if you are smart about using low trading cost strategies to participate you will get about a 7% annual return on your investment. Of course the standard deviation of this is large, but none the less that's what it's been for the past 200 years.

      While there is a lot of noise in the signal studies are out there which show the value o

      • by msobkow (48369)

        Apple? Microsoft? Facebook?

        Are you seriously trying to tell me that these companies have future revenues and payouts that justify their exhorbitant prices?

        Don't confuse "shiny, shiny" and "Windows n+1" with actual investment in R&D or new technology. Don't confuse hedge funds and futures with actual value. They're gambling on a return, but not on profitability.

    • by Kjella (173770) on Saturday July 20, 2013 @08:32PM (#44339407) Homepage

      That said, I've heard a saying that says "the market can be wrong longer than you can be right", which is to say as long as you're planning to sell in the stock market again (as opposed to getting a controlling majority and go private) you need the market to realize its mistake and adjust the stock price accordingly. Otherwise you're stuck with it, either you can sell out again at the same undervalued price or you can leave your funds invested there hoping that some day eventually the market will understand. It is especially true of bubble economics, you might think it's a bubble but if you bet it's going to burst the market might continue inflating the bubble beyond your means forcing you to sell off before it finally bursts. You were "right", but unless you can understand when the market turns you might still end up the loser.

  • Negative press (Score:5, Insightful)

    by PCM2 (4486) on Saturday July 20, 2013 @05:18PM (#44338297) Homepage

    Don't worry; Steve Ballmer's reorg will fix all of this. All of the product groups that analysts used to compare quarter-on-quarter and year-on-year have disappeared. Products have been shuffled around into new groups organized around "engineering." The upshot is that money-losing products like Bing are now going to be lumped in with big breadwinners like Office. You won't be able to look at the Xbox and Online Services divisions anymore and say "they lose money." All those failures will be hidden in the new structure. Without an instance like Microsoft writing down almost a billion dollars on the Surface RT disaster, it will be harder for anyone to gauge how it's doing, at least for the next few quarters. Problem solved!

  • World Changed (Score:4, Interesting)

    by puddingebola (2036796) on Saturday July 20, 2013 @05:20PM (#44338313) Journal
    How many of the online services you use dependent on any particular platform? The mobile revolution played some role in splitting the nut open and allowing the internet to grow. Now we have an internet built around open standards, and with HTML5, the services we use will be less dependent on the use of any particular company's platform. I think Ballmer's use of the term "devices and services" is an accurate description of where everybody's head is at now. If I just want to use a computer for light work and communications, who cares whose platform I use? I went back and read Negroponte's "Being Digital" recently to see what was in it. I am going to start doing this more because I'm amused by tech prognostication and guruism. One comment in there stayed with me, however, to the effect of , one company can leverage a proprietary technology or standard for a while, but sooner or later, open standards catch up with them. In 2000 I was using IE to use the web. Now there is a range of browsers, iOS, and Android, and they all seem to function well enough or better for most peoples needs.
  • Chicken or Egg? (Score:5, Insightful)

    by istartedi (132515) on Saturday July 20, 2013 @05:22PM (#44338327) Journal

    I think Win8 slowed PC sales. It's just anecdotal; but you hear people say they were at the store and didn't want to buy a machine unless it came with Win7. Otherwise, they're waiting to see if MS can get rid of the New Coke OS and replace it with Classic.

    • Re:Chicken or Egg? (Score:4, Interesting)

      by Mike Frett (2811077) on Saturday July 20, 2013 @07:01PM (#44338857)

      They were slow even with 7. The problem is, that new PC you got 5 years ago can still play Games and browse the web just fine and there's no reason to upgrade. That's where Microsoft's EOL for Windows comes in handy, XP is ending soon and that will force people to finally choose where they want to go after the NSA/8 fiasco.

      The only reason to upgrade came from new versions of Windows using more RAM and running slower than previous versions. Also new Games played a part but they don't count anymore, Indie devs are moving in now and most of those Games don't require a high power machine. And people like me whom have already switched to Linux don't need to worry about upgrading. With something like Xubuntu, everything runs fast and snappy even with the latest versions and no 'windows rot' that degrades your machine over time.

      So yeah, it's not looking all that great for Microsoft unless they find a new line of business besides Software. And I'd highly recommend they cut ties with the NSA. But they are a very hard-headed company.

    • No, PC sales started dropping off the quarter after the iPad was released. And have continued to go downhill ever since.

      http://www.asymco.com/2013/07/18/the-pc-calamity/ [asymco.com]
      http://www.asymco.com/wp-content/uploads/2013/07/Screen-Shot-2013-07-18-at-7-18-11.16.38-AM.png [asymco.com]

    • Re:Chicken or Egg? (Score:4, Interesting)

      by Teckla (630646) on Saturday July 20, 2013 @08:07PM (#44339297)

      I think Win8 slowed PC sales. It's just anecdotal; but you hear people say they were at the store and didn't want to buy a machine unless it came with Win7. Otherwise, they're waiting to see if MS can get rid of the New Coke OS and replace it with Classic.

      I'm in the market for a new PC and I can tell you that I'm waiting for that Metro train wreck to be sorted before buying another Windows PC. In fact I'm starting to lose hope and am wondering if I should be looking at Macs instead.

  • by guidryp (702488) on Saturday July 20, 2013 @05:24PM (#44338343)

    The traditional PC market has had 5 consequential quarters of decline. This is Microsofts core market, where it makes much of its money.

    On top of that Microsoft has essentially failed to gain any traction in the the new growth markets of smartphones/tablets.

    So it is understandable that like the PC market, which is adjusting to some new smaller number of annual sales, Microsoft which makes it's income from those sales will adjust down to some new lower level of earnings, and a correspondingly lower stock price.

  • even after Friday. Ben Berspankme will give you 0.25%. Hmmmm which was better.

  • What happened? Did Baldmer not die?

  • Much worse to come (Score:3, Insightful)

    by Anonymous Coward on Saturday July 20, 2013 @07:08PM (#44338893)

    Very few sheeple noticed that Microsoft OFFICIALLY cancelled Metro (sometimes called 'new UI' or Windows RT interface). Microsoft merged the phone and tablet divisions, and in a public statement declared that Metro was EOL, and that a new unified phone/tablet UI would be released ASAP (end of 2014 likely). The new UI is also likely to be a major 'selling' (snigger) feature of Windows 9.

    However, Microsoft has a new round of tablets (x86 and ARM) released later this year based on Metro. So Microsoft is about to launch a product line they have already pre-announced is obsolete. This is the biggest disaster in Microsoft history. Confidence in developing for Microsoft mobile devices, already at rock bottom, will totally vanish.

    The NSA spying platform, the Xbox One, makes this particular situation even worse. There is ZERO migration path for casual games from Microsoft's phones/tablets to the console. Small games developers are told by Microsoft to "get bent" when they inquire about getting their work on the Xbone.

    The response to universally hatred of Windows 8 was for Bill Gates to instruct Microsoft to replace large chunks of the OS with the deepest NSA hooks yet seen in an operating system, and this is the form of Windows 8.1. Windows 8.1 can be thought of as the Windows with the in-build NSA keylogger, if by 'keylogger' one means dozens of compromised ultra-low-level services. Bill Gates boasts that almost any software running on Windows 8.1 provides a constant stream of keyboard entry data to 'advertisers' so that the user will receive targeted ads - and like Google, 'advertisers' is a cover word for NSA, even though both do make a lot of money from the ad services as a by-product.

    So, using 'Notepad' on Windows 8.1 with an Internet connection means later seeing ads later based on your private text, and your private text ending up on an NSA server, even if you never actually transmitted the contents over the Internet in any form.

    Problem is, Bill Gates boasts about his NSA spying at meetings with 'elites' all across our planet. He boasts about his love of eugenics. He boasts about how he intends to place every detail about every sheeple child on his new database system- a system built with his mate Rupert Murdoch (yes, Bill Gates is a partner of Fox News- Murdoch's proudest propaganda operation). You sheeple are told Fox News and Bill Gates are diametric opposites- how your masters howl with laughter at your stupidity and nativity.

    But the problem is Bill Gates is too 'in your face' even for the sheeple to take. The public perception of Microsoft is terrible and getting worse. Gates' desire to build the pervert's dream by installing always on camera systems into the bedrooms of millions of children is going to backfire horribly. Bill Gates is on the verge of being known as a 'Jimmy Savile'-like monster on a planetary scale.

    The Wintel project, at the time of its greatest threats, has lost all sane leadership. Microsoft and Intel are going to plummet like lead balloons. This should be the age of cheap, functional PC computing, but Intel is off chasing ARM, and Microsoft is off chasing Apple. No-one is flying the plane, so it's gradually turning into a perfect nose dive. The success of Wintel across the last few decades have gained a lot of 'altitude', but neither Intel or Microsoft are constructed to accept a gradual decline.

    We should be happy about the turn of events though. Wintel had chosen to allow the PC to stagnate for maybe the last ten years, choosing to milk the public by keeping the average yearly cost of PC ownership far, far too high. Basic PCs should have been built into the keyboard at least 5 years ago, hooking up to external storage. These devices could have been sold for as low as 50 dollars for Internet and homework/small office use. But the major PC players did everything they could to prevent a repeat of the calculator and digital watch phenomena, where the basic item would sell dirt cheap. Microsoft alone wanted far more than 50 dollars per unit.

  • by walterbyrd (182728) on Saturday July 20, 2013 @08:51PM (#44339467)

    Windows sales are not down because of weak PC sales, PC sales are down because nobody wants the new Windows.

  • by strack (1051390) on Saturday July 20, 2013 @08:59PM (#44339501)
    It would have been funnier if it dropped 8.1%

Time sharing: The use of many people by the computer.

Working...