Well, with a *profit* of almost $5 billion last quarter, $12.6 billion
last year, $28 billion in the bank, and one of the highest profit
margins in the Fortune 500- seems they aren't spending enough
to innovate. What exactly are they "innovating", anyway? Do tell.
Microsoft had more profit last year than Wal-Mart, IBM, Berkshire Hathaway,
Goldman Sachs, Procter & Gamble, Wachovia, Wells Fargo, UPS, HP, Dell,
Cisco, Coca-Cola, PepsiCo, Home Depot, Verizon, AT&T, Time Warner,
Intel, Merck, Phizer, Johnson & Johnson, and many others. If you were to
look at these companies, most of them had revenues that dwarfs Microsoft's,
and yet they make less money. Like the behemoth Wal-Mart. It took
$351 billion in revenue to make a profit of $11.2 billion. Microsoft had a
profit of $12.6 billion on revenues of $44.2 billion. Of course, you may be
thinking that's a good thing for investors, it should be- but, Microsoft's stock
hasn't moved in almost 8 years.
Perhaps, those that might invest, are waiting for Microsoft to do
something truly "innovating". But to do that, Microsoft will probably
just buy the innovation.... they could put that enormous cash stash to
some good use.
I don't think it would kill Microsoft to let folks retrieve their email
for free from a non-adware email client... especially, with their own
product. Gmail and AOL/AIM mail let you get your mail free with
any email client. Coincidently, both companies saw surging ad revenue
last quarter. We all know about Google's tremendous growth, but
AOL has actually started to turn things around.... mostly because of
their "free everything push" attracting users to their content, and unlike
the late 90s and early 2000s, there's real ad revenue to be made by
these websites now. I wonder what's MSN's problem? Looks like
Microsoft might try to solve that problem by buying Yahoo.
Losing money is never a good thing, but being too stingy, greedy,
and afraid to spend money can have negative consequences, too.
Sometimes, giving away something can help create product loyalty,
and spread some goodwill among your customers.
-Michael
* John Barnes: