Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Microsoft Corporation (MSFT): Ringing The Registers, Yet Again

Page 1 of 2
Microsoft Corporation (NASDAQ:MSFT) has exhibited great volatility in its share price recently, defying what most investors normally expect from a megacap, blue-chip stock. Things got even wilder when the software juggernaut announced it would purchase Nokia Corporation (ADR) (NYSE:NOK)’s smartphone business as well as a portfolio of services and patents for a tidy $7.2 billion.
Microsoft Corporation (NASDAQ:MSFT)

Microsoft Corporation (NASDAQ:MSFT) is no stranger to headline-making deals, having spent billions over the past few years trying to expand its presence in mobile devices and social media.

With so much cash on the books, Microsoft Corporation (NASDAQ:MSFT) can easily afford the billions it’s been spending. But at the same time, the company has a duty to its shareholders to allocate its capital in the best way possible. Has the company succeeded on that front? Or, on the other hand, is Microsoft Corporation (NASDAQ:MSFT)’s spending spree simply a waste of shareholder money?

Ringing the registers, yet again
Upon announcing the deal, Microsoft Chief Executive Officer Steve Ballmer told reporters the deal represented a “signature event.” It’s not entirely difficult to see why Microsoft Corporation (NASDAQ:MSFT) and Nokia Corporation (ADR) (NYSE:NOK) are so close to one another, since their partnership first began in 2011.

Since then, Nokia Corporation (ADR) (NYSE:NOK)’s Lumia devices have run on Microsoft’s Windows software. However, Microsoft Corporation (NASDAQ:MSFT)’s flagship products, its Windows operating system and Office products, are still mostly run on personal computers, for better or worse.

Meanwhile, Nokia’s stock surged as much as 40% intra-day after the announcement. Shares of Nokia reached their highest level in over a year, and it’s easy to understand the optimism from Nokia’s point of view.

The company, which was once a global leader in cell phones, has seen its business deteriorate in recent years. Nokia’s devices have not kept up with the soaring popularity of the iPhone, Android, and other competing products.

Nokia was a $40 stock in late 2007, and booked 51 billion euros in sales and 8 billion in operating profit that year. As competition heated up and stole market share away from Nokia, its business collapsed, and its stock price followed suit. Today, Nokia trades for $5 per share and reported an operating loss of more than 2.3 billion euros on just 30 billion euros in sales in its last fiscal year.

Clearly, Nokia is in a dire situation, and needs something to breathe life back into it. Fortunately for Nokia, Microsoft was there to offer a helping hand.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!