Microsoft

Happy Friday to all our readers! We welcome you back to Tech Month, and are bringing to you today one of the biggest players in the software industry, Microsoft (MSFT). This tech giant we have known since 1981, founded by Bill Gates and Paul Allen, focuses on software, operating systems, as well as gaming. The current CEO, however, is Steven Ballmer. The most widespread Microsoft product is the Windows OS. The first system, the "MD-DOS" ran on an IBM computer, and followed soon thereafter with Windows 1.0. Now, the company's most recent OS is Windows 8, designed with emphasis on the most modern technologies, especially tablets. Now, for the stocks. Like other companies, Microsoft experienced steady growth in the 80s and 90s until 1999, when it drastically surged to around $60 a share. Since then, shares have unfortunately remained stagnant in the $25-35 zone. We expected more growth considering the evolution from Windows 98, ME, XP, Vista, and 7, now with the spreading Windows 8. With these first statistics, we do not expect significant growth with the new OS, and October's results provide us congruent information. Windows predicted huge numbers with the release of Windows 8; remember that most PC users use Windows (half the blog readers, just a small sample of all the users worldwide, use Windows). Upon hearing these news, we were excited; we looked forward to seeing upwards development, but unfortunately saw a complete foil. Earnings per Share (EPS) instead fell 20% in mid-October. EPS describes the amount of money expected to be gained or lost on each individual share over a specific period of time, often a quarter (QT) or Fiscal Year (FY). That same month, however, Microsoft announced that their new Windows 8 platform would expand beyond only Nokia phones. Although the Nokia Lumia is increasingly popular, and a well-needed comeback for the company, Microsoft has plans to seek other phone manufacturers, including HTC and its own Windows Phone. Now, for our verdict: we believe Microsoft is heading on the right path but it is not yet a safe bet for investment. Considering the longevity of the stagnancy hovering over Microsoft on the market, investing will be prime when the Surface with Windows 8 Pro is released. Our simulated investments turned a loss as well, as we bought shares at $29.64 and they now sit at $28.81.