Tech giant Microsoft has made some significant management changes and has reported solid quarterly results, yet the company’s stock is up just 0.5% in the last 3 months. Are the investors missing something?
By Sarfaraz A. Khan, Research Assistant: Gohar Yousuf
March 13, 2014
Last month, tech giant Microsoft (MSFT) made significant changes at the top. The company named a new CEO, its iconic founder Bill Gates (Trades, Portfolio) stepped down as chairman, it reassigned the head of the company’s hardware and entertainment products unit to make room for Nokia (NOK)'s former head Stephen Elop.
The management changes have occurred just weeks after the company released its impressive quarterly results. The company’s shares, however, have largely remained range bound since mid-November between $35 and $38.
A couple of days ago, it was revealed that Microsoft will give Stepehen Elop complete control of the Devices & Studios division by reassigning Julie Larson-Green, once the deal between Microsoft and Nokia closes. Larson-Green has been running the division, which is responsible for all of Microsoft’s hardware and entertainment products including Xbox and Surface tablet, since last year’s reorganization. Larson-Green will become the chief experience officer for the company’s application and services unit which is responsible for several products including Office, Skype and Bing.
In the beginning of February, after months of speculation, Microsoft finally named Satya Nadella as its new CEO. Nadella used to lead Microsoft’s cloud computing and enterprise business, which was the fastest growing operation of the company. Nadella will replace the company’s long running Chief … read full article at GuruFocus