Looking past the massive write-down and restructuring charges, wide-moat Microsoft turned in a decent quarter, says Morningstar analyst Norm Young.
Although results were better than expected, we expect further growing pains as Microsoft continues to pivot to a cloud and mobile world, writes Morningstar’s Norm Young.
Next-generation point-solution providers lead the pack, but legacy vendors could turn to M&A to catch up in analytics.
The firm's shift to a cloud, mobile, and services model progresses, while the core commercial business--last quarter's difficult comparisons aside--remains solid.
The wide-moat firm's cloud initiatives were the highlight for the quarter, but we’d wait for a larger margin of safety before investing, says Morningstar’s Norman Young.
Strategic changes may allow for reduced direct investment in hardware.
But a strong quarter doesn't change our fair value estimate for this data-analytics software firm.
Management's cost-cutting, restructuring, and strategic moves should help Microsoft regain lost ground in the mobile devices and the cloud, says Morningstar’s Norm Young.
The majority of the layoffs stem from redundancies following the Nokia acquisition while Microsoft looks to streamline operations, but we expect additional details in the firm's fourth-quarter earnings call next week.
Red Hat's core Linux business remains strong, but increasing cloud adoption could provide upside.
Microsoft CEO Satya Nadella is making critical decisions for the transition to cloud and mobility platforms, says Morningstar's Norman Young.
The tech giant's results show promising signs that Satya Nadella is helping push Microsoft ahead with its core corporate userbase, says Morningstar's Norman Young.
Satya Nadella's insider status has given him the experience to continue reinventing the software giant for the post-PC world, says Morningstar's Norm Young.
It may not be enough to keep the technology giant's competitive advantages from declining, though.
Assuming the integration of the $7 billion deal goes smoothly, Nokia's hardware business will help Microsoft more nimbly execute its recently unveiled devices and services strategy, says Morningstar's Norman Young.
The announcement came as a bit of a surprise, but there may have been some pressure that forced the move, says Morningstar's Norman Young.
With its reorganization and a shift to devices and services still in its early stages, Microsoft has more work ahead to catch rivals in the fast-growing mobile and cloud markets, says Morningstar's Norman Young.
This market share leader in data centers can grow at nearly a double-digit rate.