Thursday, October 25, 2007

Jaw Dropping...

I know it's not directly the result of the PerformancePoint Server launch, although it's fairly widely acknowledged that our friends in Redmond are doing well in the BI market. But the news today that Microsoft blew out its Q1 earnings targets by over $1 Billion is well, shocking. Suddenly, investing a mere $240M for a share of Facebook doesn't seem like too much money to pay...

To put it in some perspective, Microsoft beat their number by almost as much as Cognos generates in revenue in an entire year. They generated over $4.5B in NET Profit. All Hail Halo 3!

The stock is doing well in after-hour trading, which you might expect, and has given the company their biggest single day stock jump in years.

The impact on BI, again, can't be known--but if nothing else, the 500 lb. gorilla is alive and kicking, and is sitting on a sh*tload of cash...

32 comments:

Pat said...

Yawn....MSFT earnings, while substantial, have exactly nothing to do with Cognos revenue, performance management or market movement. While I applaud high performance, surpassing your earning announcement by this amount seems to imply lack of performance management capability inside the mothership. Rule #1 in public markets - surprise is bad in either direction. So in spite of the fact that MSFT stock closed up by 13% (nice for new employees), this post is flagged for illegal motion in a performance management situation.

Guy said...

After further review, the penalty is denied, and the post stands. Touchdown Redmond.

Examining the replay of the posting shows that there was no attempt to directly link performance management revenue or insight to the announcement (that came in the following Halo post).

It's just a lot of freaking money is all I was saying. And an order of magnitude not really seen in the tech. space today.

Plus, on a percentage basis, it was only like a 7% miss (in the good direction)--not like 20% or something, so a performance management purist could argue that the miss is well within the tolerance range likely set on Chris Liddell's dashboard. He probably didn't even have a blinking stoplight or anything to tell him to click down on...

Nic Smith said...

up again today... ring that bell!

http://www.forbes.com/2007/10/31/microsoft-apple-tech-markets-equity-cx_er_1031markets34.html?partner=yahootix

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