What do you buy the Apple fanboy? Visit the TUAW Holiday Gift Guide to find out

AOL Money & Finance

Microsoft -- What are you thinking?

I don't understand what Microsoft (NASDAQ: MSFT) is doing. Last week at this time, investors were celebrating a very nice earnings report, and after years of watching the stock go nowhere, investors had some hope for the rest of '08. Now comes today's announcement that the software maker wants to buy struggling internet search firm Yahoo (NASDAQ: YHOO), for a 60% premium to where Yahoo stock was trading.


I know that Microsoft wants to go after Google (NASDAQ: GOOG). I also know that I have an egg on my face for a "buy Google into earnings" post that I wrote yesterday. But why pay 60% more than the market price for a company that admittedly has all kinds of problems and no one else wants?

Just when investors had thought they may just make some money with their Microsoft stock, this news comes along and now, I'm afraid it will be many more years until they see their stock move up.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. DISCLOSURE: Writer has no positions in any stock mentioned as of 2/1/08

Related Posts

Reader Comments (Page 1 of 1)

Symbol Lookup
IndexesChangePrice

Last updated: December 03, 2008: 11:15 PM

BloggingStocks Exclusives

Hot Stocks

BloggingStocks Featured Video

TheFlyOnTheWall.com Headlines

WalletPop Headlines

AOL Business News

Latest from BloggingBuyouts

Sponsored Links

My Portfolios

Track your stocks here!

Find out why more people track their portfolios on AOL Money & Finance then anywhere else.

BloggingStocks Partners

More from AOL Money & Finance