Microsoft (MSFT) Investors Cheer Ballmer's Departure
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Rating Summary:
58 Buy, 10 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 2
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On Friday Microsoft (NASDAQ: MSFT) stock climbed after the company announced that Chief Executive Officer Steve Ballmer has decided to retire within the next 12 months. Given the stock's lack luster performance under Ballmer's leadership, few are surprised with the stock's positive reaction.
"We think this announcement will be viewed favorably by investors, as many are looking for some sort of shot of adrenaline for the company," said analyst Jason Maynard of Wells Fargo. "We believe that the company needs a better strategy to compete in this post-PC world, and hope that they will look for someone that has product leadership experience and the vision to push the company forward."
Ballmer has been at the head of Microsoft since 2000. During that time, shares of Microsoft have declined 40% and Ballmer has been accused of being late to the party and behind the curve on a number of key technologies including smartphones and tablets, areas dominated by Apple (Nasdaq: AAPL) and Google (Nasdaq: GOOG) software.
So far Microsoft's attempts to play catch up in these areas have fallen flat. These efforts include its Surface Table, which flopped, and Windows Phone 8, which has market share that is dwarfed by iOS and Android.
Commenting on the change, Bill Gates sounded less than sentimental.
"As a member of the succession planning committee, I'll work closely with the other members of the board to identify a great new CEO," said Gates. "We're fortunate to have Steve in his role until the new CEO assumes these duties."
Wells Fargo has a Market Perform rating on Microsoft.
For an analyst ratings summary and ratings history on Microsoft (NASDAQ: MSFT)click here. For more ratings news on Microsoft click here.
Shares of Microsoft closed at $32.39 yesterday.
"We think this announcement will be viewed favorably by investors, as many are looking for some sort of shot of adrenaline for the company," said analyst Jason Maynard of Wells Fargo. "We believe that the company needs a better strategy to compete in this post-PC world, and hope that they will look for someone that has product leadership experience and the vision to push the company forward."
Ballmer has been at the head of Microsoft since 2000. During that time, shares of Microsoft have declined 40% and Ballmer has been accused of being late to the party and behind the curve on a number of key technologies including smartphones and tablets, areas dominated by Apple (Nasdaq: AAPL) and Google (Nasdaq: GOOG) software.
So far Microsoft's attempts to play catch up in these areas have fallen flat. These efforts include its Surface Table, which flopped, and Windows Phone 8, which has market share that is dwarfed by iOS and Android.
Commenting on the change, Bill Gates sounded less than sentimental.
"As a member of the succession planning committee, I'll work closely with the other members of the board to identify a great new CEO," said Gates. "We're fortunate to have Steve in his role until the new CEO assumes these duties."
Wells Fargo has a Market Perform rating on Microsoft.
For an analyst ratings summary and ratings history on Microsoft (NASDAQ: MSFT)click here. For more ratings news on Microsoft click here.
Shares of Microsoft closed at $32.39 yesterday.
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