Is This The End of the Microsoft Empire?

About a month ago, I wrote an article arguing that the future is bright for Microsoft. Then, last week Microsoft unveiled disappointing earnings for Q4 2013, and the stock nose-dived–dropping 11 percent in a single day. Ouch!

Was I wrong? Is Microsoft’s future actually bleak? Is Microsoft going to crumble to the ground before our very eyes as some have suggested? In a word, “No”.

Microsoft revenue and profit were both up in Q4 2013 compared to Q4 2012. Revenue and profit were both up for all of fiscal 2013 compared to 2012 as well. Microsoft wrote off nearly a billion dollars to account for disappointing sales of the Surface RT tablets, but aside from that most of the indicators actually look pretty good for Microsoft. Investors may be nervous that Microsoft has peaked, and wanted to cash out on top–that is what investors do–but the drop in stock value isn’t really a barometer for the future of the company.

There have been some mis-steps lately. Windows 8 has taken a lot of heat. Sales of the Surface RT and Surface Pro tablets have been underwhelming. There was a major backlash, followed by Microsoft caving to the backlash, followed by a backlash to the backlash when Microsoft unveiled the Xbox One. None of that is all that new, though, for Microsoft. There’s always a mix of good news and bad news–two steps forward and one step back–for the tech giant.

The recent reorganization by Ballmer, and the renewed focus on cloud and subscription services will help Microsoft regain its footing and maintain its role as a dominant player in tech for the foreseeable future. For more, check out Microsoft Isn’t Doomed Yet.


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