From a purely financial point of view, Microsoft is not a good company. One of its revenue sources appears to be extorting Linux vendors (thanks to Novell which initiated this), but some of its main revenue sources are the 'cash cows', Windows and Office which are both declining as cash cows [1, 2, 3, 4]. "Microsoft (MSFT) Approaches New Downside Target of $24.64," says this report and the company's current value is actually $24.22 (52-week range is $22.73-$31.58).
Microsoft lost more than $6 billion in operating losses on revenue over the last eight years according to Larry Dignan, ZDNet Analyst.
In fiscal 2010 ending June 30, Microsoft reported an operating loss of $2.35 billion on revenue of $2.2 billion for its online services division . Microsoft’s online services division has been building out data centers for Azure. Microsoft noted in its annual report:
Cost of revenue increased $700 million or 82%, primarily driven by increased online traffic acquisition, data center and equipment, and headcount-related costs. Research and development expenses increased $153 million or 17%, primarily due to increased headcount-related expenses.
Comments
Florian Mueller
2010-08-23 06:21:22
Dr. Roy Schestowitz
2010-08-23 06:38:51
twitter
2010-08-26 17:58:31
Roy has done his homework in this case and the facts are easily verified. Microsoft's online and entertainment losses are longstanding facts that Roy has reported for years. If anyone thinks there's something wrong with ZDNet's analysis of this quarter's losses, please examine the report yourself and let us all know. Most Techrights regulars are here because they care about facts.
In the mean time, I have to agree with Roy that Florian is a troll. When Microsoft turns a $60 billion cash pile into debt trying to take over the internet, Florian chides Roy for listening to a reporter he trusts at ZDNet. When a Win32 virus downs an airline and kills more than 100 people, Florian blames IBM. In the last month, Florian has polluted Techrights comments with hundreds of insulting and distracting comments, all to defend Microsoft. I don't think he's made a single, useful correction.
Florian Mueller
2010-08-23 06:50:07
I'm not a troll for pointing out that the two things don't mix at all. Instead, they show that you just pick targets you want to smear and you don't seem to care about the facts. If it looks useful to you, you use it, no matter how dubious the source is (such as 'Groklie' quotes). In my case, I just quoted ZDNet and got bashed for it.
Dr. Roy Schestowitz
2010-08-25 14:11:41
I didn't say "troll". I still think you are a campaigner for hire, at the very least based on your history.
Florian Mueller
2010-08-23 07:30:37
Now you just quoted a ZDNet analyst above.
That doesn't make *me* a troll. Just someone else.
Dr. Roy Schestowitz
2010-08-25 14:10:26
http://www.zdnet.com/blog/btl/cheating-on-ubuntu-with-a-mac/38282
This is tabloid level, fitting alongside Justin Bieber "scoops". There's lots like that, but this is one which I found today.