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BusinessWeek: How Microsoft Can Embrace Linux

Jul 26, 2004, 15:00 (9 Talkback[s])
(Other stories by Alex Salkever)

[ Thanks to Haider Tuaima for this link. ]

When Microsoft announced earnings for its fiscal fourth quarter on July 22, the after-hours markets sent its stock down by 5%. Investors clearly had already finished celebrating the Colossus of Redmond's bold announcement two days earlier that it would issue a $3-per-share one-time dividend, part of a total $75 billion stock-buyback and dividend plan over the coming four years.

"Why is the stock being punished? Because the market sees something different from the upbeat picture CEO Steve Ballmer painted on the day of the dividend announcement. It recognizes that Microsoft faces increasing competition in both PC operating systems and in desktop applications, the software giant's key product areas. And it's watching Microsoft's difficulties repeating in new global markets the dominance it has gained in America..."

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