Barney's Blog

Blog archive

Microsoft Thinks Its Stock Is a Bargain

Microsoft's stock is not the high-flier it was throughout the late '80s and early '90s. Many investors earned their yachts, Porsches and retirement homes on the backs of this baby. And thousands of employees became Microsoft millionaires, driving the prices of homes in Redmond to near-Silicon Valley heights.

Since the tech crash of 2001, the stock has been stuck. Like a rocking chair, it's going nowhere. But Microsoft thinks its own company is a pretty good deal and is buying back $40 billion in shares. That's like buying a Yahoo's worth of stock. And that's on top of the $40 billion buyback already completed.

I'm no Wall Street whiz (and neither, apparently, are they), but this seems like a good long-term move. It acknowledges that Microsoft is now a mature, less volatile stock. It means there's stability and sound financial underpinnings. Oh, how I wish Steve Ballmer and Bill Gates had been running Lehman, AIG and Merrill Lynch!

During the tech crash in 2001, there were no federal bailouts -- and our business came through just fine. Investors (like you and me, I'm sure) who lost money took our lumps and went on. What lessons should we have learned from the tech bubble burst that we can apply to today's Wall Street meltdown? Thoughts welcome at [email protected].

Posted by Doug Barney on September 23, 2008


Featured

  • Microsoft Appoints Althoff as New CEO for Commercial Business

    Microsoft CEO and chairman Satya Nadella on Wednesday announced the promotion of Judson Althoff to CEO of the company's commercial business, presenting the move as a response to the dramatic industrywide shifts caused by AI.

  • Broadcom Revamps VMware Partner Program Again

    Broadcom recently announced a significant update regarding its VMware Cloud Service Provider (VCSP) program, coinciding with the release of VMware Cloud Foundation (VCF) 9.0, a key component in Broadcom’s private cloud strategy.

  • Closeup of the new Copilot keyboard key

    Microsoft Updates Copilot To Add Context-Sensitive Agents to Teams, SharePoint

    Microsoft has rolled out a new public preview for collaborative "always on" agents in Microsoft 365 Copilot, bringing enhanced, context-aware tools into Teams channels, meetings, SharePoint sites, Planner workstreams and Viva Engage communities.

  • Windows 365 Cloud Apps Now Available for Public Preview

    Microsoft announced this week that Windows 365 Cloud Apps are now available for public preview. This aims to allow IT administrators to stream individual Windows applications from the cloud, removing the need to assign Cloud PCs to every user.