Microsoft Corporation (NASDAQ:MSFT) recently reported quarterly results in which the company saw earnings per share at $0.71 on $26.47 billion revenue.
“We’re actually seeing estimates for the next two quarters from the buy side and independent analysts who contribute to Estimize far higher than the Street. They expect some pretty good numbers from Windows 10 and we’re also seeing a large upgrade cycle in the enterprise. Across the board, it’s just been really good here,” Drogen said.
According to Drogen, the Street has been pretty low on Microsoft Corporation (NASDAQ:MSFT) in the last two quarters compared to figures they are seeing on Estimize.
Meanwhile, Microsoft Corporation (NASDAQ:MSFT) is making some “really big, dramatic decisions” about fundamental changes in the business, Cory Johnson told Drogen and his colleague Betty Liu.
Fundamentally, the company is a seller of software, the host notes. However, he pointed out that Windows 10 will be free for a year for those who have licenses for Windows 7 and Windows 8. That will drive up adoption and applications development for the new platform, he said.
However, Johnson also pointed out that giving away software to people for their computer, tablet and phone may keep people on the platform, but the company will have to take a hit on their balance sheet somewhere along the line.
Johnson also said that Microsoft has just announced that the company’s share buyback program will be ending in 2016. The software giant, Johnson implied, is essentially re-allocating funds as they compete in a changing environment and change the company’s strategies.
Ken Griffin’s Citadel Investment Group owned about 1.19 million Microsoft Corporation (NASDAQ:MSFT) shares by the end of September, a 79% decrease in the fund’s stake in the software maker compared to their stake in the previous quarter.