Here’s how Donald Trump actually spends his moneyHello to our staff at Microsoft Nokia (NYSE: NOK). You’re re out of work! So, the message came today when Microsoft revealed plans over the next year to fire up to 18,000 people. The bulk of the about 12500 people’s layoffs will come from the Nokia devices and services company which Microsoft officially acquired in April. Most of the remaining firings would affect people with similar jobs, pursuing new CEO Satya Nadella’s promise to build a faster-moving, leaner mean organisation. Grrr .. Grrr. Especially when you re Microsoft that hardly ever fires anyone and when you re deal with Finland that also has something against firing people, it’s not easy to fir this many people. The company did it with two memos, together with a press release. Nadella’s first memo came from where he explained how the cuts fit into last week’s plan outlined in his memo. The second came from former Nokia CEO Stephen Elop and now Microsoft executive who never really succeeded in reviving Nokia’s company took Finland’s identity into Microsoft’s clutches and must feel an amount of remorse about all this. (Right?) In recent years, a whopping 40000 Nokia staff had already lost their employment as the phonemaker shifted from global market dominance to a case study by Harvard Business School. The only big layoffs in Microsoft’s history happened in 2009 when, after the Windows Vista fiasco and the company’s utter fail in web, about 6000 employees were let go in something of a face-saving move. CLICK HERE NOW for your Cheat Sheets Weekly Order!
T = Stock Chart technicals are High
Source: Thinkorswim Looking at the implied (red) volatility and implied volatility skew rates of Microsoft options that help determine if investors are bullish neutral or bearish. 30-Day IV Percentile
90-Day IV Percentile
Microsoft choices
23.33%
96% 94%
What does this mean? It means investors or traders are buying a very substantial amount of call and putting contracts for calls as opposed to the last 30 and 90 business days.
Flat
September Options
Average
Average
On the next page, take a look at the level of earnings and revenue growth and the conclusion.
E = Profits Mixed quarter-over-quarter
Earnings are also closely associated with increasing profits and growth levels of revenues. The announcement reactions to the last four quarterly earnings also help gage investor sentiment on Microsoft stock. What do Microsoft’s last four quarterly earnings and revenue growth (Y-O-Y) figures look like and more specifically how did the markets feel like these numbers?
Q1
Q4
2014
-5.56%
2.63%
11.94%
<
-0.44%
14.26%
10.17%
0.12%
2.09%
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P = Great Relative Performance Versus Peers and Sector
How has Microsoft stock done with respect to its peers Apple (NASDAQ: AAPL) Oracle (NASDAQ: ORCL) Google (NASDAQ: GOOGL) and Sector (NASDAQ: GOOGL)?
Microsoft
Apple
Business
Year – to-Date Return
17.82%
5.23%
4.08%
-5.56%
2.63%
11.94%
<
-0.44%
14.26%
10.17%
0.12%
2.09%
CLICK HERE for your Weekly Stock Cheat Sheets
P = Great Relative Performance Versus Peers and Sector
How has Microsoft stock done with respect to its peers Apple (NASDAQ: AAPL) Oracle (NASDAQ: ORCL) Google (NASDAQ: GOOGL) and Sector (NASDAQ: GOOGL)?
Microsoft
Apple
Business
Year – to-Date Return
17.82%
5.23%
4.08%
Microsoft is a technology company which offers valuable software products and services to consumers and businesses around the world. The organization has announced plans for the next year to fire up to 18,000 employees. Over the past few months, the stock has been trending higher, and is currently trading near all-time highs. Earnings have been inconsistent over the last four quarters though sales have increased, which has left investors happy. Microsoft has been a clear year – to-date leader in performance relative to its peers and industry. Aim to OUTPERFORM for Windows.
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