Nadella’s Magic: Microsoft Hikes Up To Second Best, Right After Apple In Stock Market
For all the Microsoft haters out there who think the company is doomed in the near future, the tech giant took long strides in the stock market this year – landing second, right after Apple.
Satya Nadella, CEO of Microsoft, has indeed been successful in reviving the dying company in such a short period of time. Though he still has a lot to prove, Nadella’s efforts are undoubtedly heading in the right direction, as he managed to dust off many assumptions, like the company not being able to cope up with the new trends and technologies.
Nadella cut expenses and jobs during his drive to converge the company focus towards mobile technology and cloud computing. This led to Microsoft attaining a market value of a staggering $410 billion on Friday. This surpassed even Exxon, valued at $404 billion – a pit caused by the drop in oil prices.
Compared with other longtime tech stalwarts, such as IBM, Hewlett-Packard and Oracle, “Microsoft has done the best job of trying to skate where the puck is going,” Daniel Ives, tech analyst at FBR Capital Markets, said.
Apple is currently dominant over the market and with its $668 billion value, which is still more than the $616 billion that Microsoft was worth when it was on top in 1999. However, Microsoft’s shares badly fell in the following year and couldn’t make a come back again.
But that is the story of the past. Microsoft has now managed to grab a considerable amount of fish in the market in the past 18 months. Checking from April 2013, the company’s stocks have risen by 70%, especially after the valuation investor, ValueAct Capital announced its $2 billion stake in Microsoft.
ValueAct Capital also went further to say that it was to change the company’s strategy. Soon after the announcement, we heard of the former CEO, Steve Ballmer, retiring. However, both parties denied any relation between the announcement and his retirement.
Ever since his “regime”, Nadella has announced new initiatives, like expansion in the much rapidly explored field of cloud computing, which assures more profit compared to the selling of conventional software. Microsoft then also launched its flagship Windows operating system, Windows 10, and other versions of software for smartphones and built new devices too.
The stock hit $50.04 on Friday, its highest point since early 2000, before slipping to the $49.50 range in afternoon trading.