Back to Search
Start Over
Microsoft shares the wealth.
- Source :
- Fortune; 8/9/2004, Vol. 150 Issue 3, p162-164, 3p, 2 Graphs
- Publication Year :
- 2004
-
Abstract
- The article discusses the decision by software giant Microsoft to turn over some of its cash to investors. If there is hope for the stock, it is because Microsoft is signaling that it wants to get back to business after a long stretch of turmoil, growing pains, and litigation. The company has been hoarding its cash for years; when pressed, Chairman Bill Gates and CEO Steve Ballmer would say they needed the reserves as a cushion against legal judgments and to plow into new ventures. However, thanks to its profitable Windows operating system and Office applications businesses, the company's cash kept growing. At the end of its recent fiscal year Microsoft had $60 billion in cash and short-term investments. There is a clear case for buying the stock. Not only is Microsoft far more profitable than the typical big company, it still has a dominant position in the industry. Microsoft also has new products on the way. The ultimate reason for confidence in Microsoft is that unlike many other companies--especially in the tech sector--it appears solid. Is Microsoft a sure thing? Of course not. Otherwise it would have shot up on the dividend news.
Details
- Language :
- English
- ISSN :
- 00158259
- Volume :
- 150
- Issue :
- 3
- Database :
- Complementary Index
- Journal :
- Fortune
- Publication Type :
- Periodical
- Accession number :
- 13952452