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Microsoft 's stock lost $32 billion in value today


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Originally shared by Mike Elgan

 

Microsoft's stock lost $32 billion in value today.

 

Microsoft's stock dropped 11 percent today in the wake of a disastrous earnings report yesterday. 

 

The drop puts Microsoft's market value at $261 billion, down from a record high of $616.3 billion in December of 1999 (one month before current CEO Steve Ballmer took over). 

 

http://news.cnet.com/8301-10805_3-57594612-75/funky-friday-more-than-$32-billion-in-microsoft-stock-value-wiped-out/

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I hate to play the apologist (especially for Microsoft!) but the article clearly states that revenue ROSE by a reasonable amount. I'm not saying that there aren't mistakes here somewhere, but it really shows just as much about how the stock market works as it does about Microsoft. Should the company pivot? Maybe. Should they take lessons where they can? Of course. However, they're still an insanely profitable company. They just happened to not reach expectations. It's not like they're suddenly circling the drain ?

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Cory, in my opinion I think the most important point is the huge write-off they took on the Surface RT.  That's the very essence of what they want their future to be and people overwhelmingly said no, we want the model with the real desktop.  Yes, they can glide for a long time, but they will continue to loose relevance every year if they don't fix this.  You can only ignore the red flags for so long.

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