It's only a stopgap measure, everyone knows. It's a temporary reprieve for XP. Just the same, netbooks are allowing XP, the operating system Microsoft tore from its loyal public last year, to make a comeback.

Last year I tried to get a new computer but was so badly abused by Vista I took it back and reformatted my old computer so I could avoid the demanding operating system.

Continue reading The return of Windows XP

The return of Windows XP originally appeared on BloggingStocks on Sun, 21 Jun 2009 13:40:00 EST. Please see our terms for use of feeds.

If imitation is the sincerest form of flattery, Microsoft (NASDAQ: MSFT) must love Apple's (NASDAQ: AAPL) chain of retail stores. But, will it help Redmond to have stores of its own?

Setting up a Microsoft store is probably going to be difficult. Apple has a fairly limited number of products. Will Microsoft have its Xbox in the stores? How about its Zune of PCs running the new Windows 7 OS? Will it display business software for servers?

According to Reuters "Microsoft Corp announced plans Thursday to open its own chain of branded stores as it looks to catch up with rival Apple Inc's successful move into retailing."

Continue reading Microsoft (MSFT): A store, just like Apple's (AAPL)

Microsoft (MSFT): A store, just like Apple's (AAPL) originally appeared on BloggingStocks on Fri, 13 Feb 2009 03:57:00 EST. Please see our terms for use of feeds.

It is fairly rare that investors question Apple's (NASDAQ: AAPL) spending. But, its marketing budget keeps growing and, with brands that are already known worldwide, the question is whether that is a good use of money.

According to The New York Times, "While other technology companies curtail their ad budgets to ride out what appears to be an intense and protracted recession, Apple, based in Cupertino, Calif., said in its most recent earnings report that it actually increased marketing and advertising during the last three months of 2008." Apple is particularly fond of going after Microsoft's (NASDAQ: MSFT) Vista program.

Continue reading Does Apple (AAPL) spend too much money on ads

Does Apple (AAPL) spend too much money on ads originally appeared on BloggingStocks on Wed, 04 Feb 2009 04:11:00 EST. Please see our terms for use of feeds.

This post is part of a feature on companies and products that our bloggers think are in need of a makeover. See all 26.

When Microsoft Corp. (NASDAQ: MSFT) released its Windows Vista operating system product almost two years ago, the market was initially excited. That excitement turned to boring indifference as customers, both business and consumer, realized that this was just another update to Windows. Nothing revolutionary, or even evolutionary (in many minds). The problem was this: Windows Vista was a huge change under the hood, but where its users interact with it, it seems like a boring reinvention of an operating system from half a decade ago.

But Microsoft doesn't just make operating systems. It's into the office productivity business (Microsoft Office, anyone), it's big into the mobile business (Windows Mobile), and it's tried desperately to compete with Google Inc. (NASDAQ: GOOG) in the web search advertising business (which has largely failed). So, the company, which continues to make a ton of cash every quarter by selling Windows on all those global PCs that are sold, has no debt and a ton of cash under the mattress. It's still a boring company with a business model that's being made rapidly outdated by the internet and web-based competitors. Should it take its cash, return it to shareholders, and close up shop? Though this was suggested of Apple Inc. (NASDAQ: AAPL) some time back, that company roared back (maybe you've heard). Can Microsoft?

Continue reading Makeover needed: Microsoft

Makeover needed: Microsoft originally appeared on BloggingStocks on Mon, 27 Oct 2008 14:10:00 EST. Please see our terms for use of feeds.

Microsoft to world: Windows XP is no more, get over it! originally appeared on BloggingStocks on Mon, 07 Jul 2008 15:03:00 EST. Please see our terms for use of feeds.

Continue reading Dell keeps backdoor to XP open -- for a fee

Dell keeps backdoor to XP open -- for a fee originally appeared on BloggingStocks on Thu, 19 Jun 2008 15:51:00 EST. Please see our terms for use of feeds.

Developers shun Vista, too originally appeared on BloggingStocks on Mon, 16 Jun 2008 16:28:00 EST. Please see our terms for use of feeds.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• ADC Telecommunications Inc. (NASDAQ: ADCT) beat Q2 estimates and raised its full-year guidance.
• Alcoa Inc. (NYSE: AA) near-term earnings prospects led to an analyst downgrade.
• Banco de Chile (NYSE: BCH) earnings prospects after an acquisition led to an analyst's upgrade.
• Benihana Inc. (NASDAQ: BNHN) posted lower Q4 profits but still beat earnings estimates.
• Bob Evans Farms Inc. (NASDAQ: BOBE) reported solid Q4 results due in part to cost management.
• Brown-Forman Corp. (NYSE: BF.B) easily beat Q4 estimates and offered full-year guidance.
• CMGI Inc. (NASDAQ: CMGI) lowered its guidance, sending shares tumbling 25%.
• Coca Cola Hellenic Bottling Co. (NYSE: CCH) warned of weaker earnings due to economic conditions.
• Conn's Inc. (NASDAQ: CONN) reported solid Q1 results and issued in-line guidance for the year.
• Dick's Sporting Goods Inc. (NYSE: DKS) earnings prospects impress analysts despite recent guidance.
• Guess? Inc. (NYSE: GES) topped Q1 expectations due to strong international expansion.
• Krispy Kreme Doughnuts Inc. (NYSE: KKD) swung to a Q1 profit despite falling revenues.
• Lehman Brothers Holdings Inc. (NYSE: LEH) posted a bigger-than-expected loss on further write-downs.

Continue reading Earnings highlights: Lehman, UBS, Krispy Kreme, Pepsico, Pep Boys and others

Earnings highlights: Lehman, UBS, Krispy Kreme, Pepsico, Pep Boys and others originally appeared on BloggingStocks on Sat, 14 Jun 2008 09:10:00 EST. Please see our terms for use of feeds.

Is the Vista fiasco bad enough to hurt Microsoft (MSFT)? originally appeared on BloggingStocks on Wed, 11 Jun 2008 14:57:00 EST. Please see our terms for use of feeds.

There is nothing wrong with borrowing other people's ideas, especially if they are good ones. Microsoft (NASDAQ: MSFT) is showing off new features of the future version of Windows. One of the most significant advances is that the software will work with touch-screen technology. That would make it a lot like the Apple (NASDAQ: AAPL) iPhone.

According to The Wall Street Journal, "A key feature of the technology allows for multiple touches simultaneously; for instance, dragging five fingers across a screen would draw five separate lines." Nifty. Whether it has practical applications is still hard to tell.

One of the byproducts of the Microsoft's feature is that use of a keyboard will become less necessary. Whether PC users will be able to type on a touch-screen remains to be seen.

Critics may argue that Microsoft wants to distance itself from its latest versions of Windows, Vista, which has received a great deal of criticism. The other possibility is that Microsoft simply wants to build software that works better. Fancy that.

Douglas A. McIntyre is an editor at 247wallst.com. and author of the Ten Stocks Under $10 letter.

Microsoft's new OS to ape Apple's iPhone originally appeared on BloggingStocks on Wed, 28 May 2008 08:43:00 EST. Please see our terms for use of feeds.

Because a long, holiday weekend can be a great time to pause and reflect -- to take a step back and look at the bigger picture -- here are some highlights from BloggingStocks a year ago today: May 25, 2007.

• Consumers and investors alike were eager for the launch date of Apple Inc.'s (NASDAQ: AAPL) ballyhooed iPhone.
• Coca-Cola Co. (NYSE: KO) announced its acquistion of Vitaminwater.
• Online retail shopping was on the upswing.
• Dell Inc. (NASDAQ: DELL) planned to begin offering its products at Wal-Mart Stores Inc. (NYSE: WMT).
• Declining new home sales in April signalled more weakness in the housing market.
• Home Depot's (NYSE: HD) new CEO began the 2007 annual meeting with an apology.
• Microsoft Corp. (NASDAQ: MSFT) denied rumors about its interest in acquiring Yahoo! Inc. (NASDAQ: YHOO).
• BloggingStocks speculated about the blue chips of 2017.
• Georges Yared reflected on the state of the market conditions and prospects for the future: Part 1 and Part 2.

And two years ago, May 25, 2006:

• Microsoft admitted that there would be delays in the relase of its Vista operating system.
• Ken Lay and Jeff Skilling were found guilty of defrauding Enron investors.

A year ago today on BloggingStocks originally appeared on BloggingStocks on Sun, 25 May 2008 14:10:00 EST. Please see our terms for use of feeds.

Microsoft (MSFT) rises on analyst commentary originally appeared on BloggingStocks on Mon, 21 Apr 2008 14:29:00 EST. Please see our terms for use of feeds.

Microsoft (NASDAQ: MSFT) says it will sell its older OS Windows XP for another two years. The company announced that "the extension is designed only for ultra-inexpensive desktop and laptop PCs too limited to run the Windows Vista system," according to The Wall Street Journal. XP was supposed to go away because it is old.

The explanation sounds bogus. Microsoft's new OS Vista has had reasonable sales, but reviews of the software say that it is full of bugs and does not help PCs work well with other devices like printers. Apple (NASDAQ: AAPL) has been pushing its OS not just for Macs but directly into the PC market. The company claims that its product works better than Vista and it appears that some consumers are buying into that claim.

There have also been reports that some corporations do not want to upgrade to Vista and will keep the old Microsoft OS running until a version after Vista is produced.

The Microsoft move may have a silver lining. Customers and businesses that want the latest and most powerful Microsoft product can buy Vista. Those who are concerned about the software can use XP, instead of considering the Apple alternative.

Douglas A. McIntyre is an editor at 247wallst.com.

Microsoft (MSFT) keeps XP, a bit of a defeat for Vista originally appeared on BloggingStocks on Fri, 04 Apr 2008 10:15:00 EST. Please see our terms for use of feeds.

Two pieces of news have come out of Microsoft (NASDAQ: MSFT) in the last day. One is that the software company will cut the retail price of Vista. The other is that Microsoft knew that the specs for the new operating system encouraged users with slow machines to buy the software. Redmond was aware that Vista would not run well on low-end machines.

The price cut may be a sign of weakness. Microsoft says Vista has sold well, but many people have stayed with older versions of Windows to save money and because Vista has received mixed reviews. Performance problems on inexpensive machines has probably not helped matters.

The cuts are for consumer versions of the software. According to The Wall Street Journal, "The changes are seen as a response to the falling prices of new PCs, which made the software price seem disproportionately large in comparison to that of a new system with Vista installed."

That reasoning seems a bit thin. Reaction to the OS has been lukewarm. Apple's (NASDAQ: AAPL) new operating system has received better reviews and that may be helping the Mac take market share from PCs. PC companies may well have pressured Microsoft to drop prices.

A weak product is not something that a flagging PC industry needs.

Douglas A. McIntyre is an editor at 247wallst.com.

Microsoft (MSFT) to drop price of Vista originally appeared on BloggingStocks on Fri, 29 Feb 2008 04:27:00 EST. Please see our terms for use of feeds.

The earnings crunch is in full swing, and here are a few of the highlights of this past week's earnings coverage from BloggingStocks:

• Abbott Laboratories (NYSE: ABT) swung to a profit on the strength of drug sales.
• AK Steel Holding Corp. (NYSE: AKS) swung to a fourth-quarter profit and easily beat estimates.
• Aladdin Knowledge Systems Ltd. (NASDAQ: ALDN) posted solid results and raised its forecast.
• Amdocs Ltd. (NYSE: DOX) reported a record quarter and reaffirmed its guidance.
• Amgen Inc. (NASDAQ: AMGN) beat exectations, but concerns remain about FDA scrutiny.
• Apple Inc. (NASDAQ: AAPL) easily beat expectations and offered revised guidance (see live blog, transcript).
• Caterpillar Inc. (NYSE: CAT) posted a solid quarter on strong international growth.
• Coach Inc. (NYSE: COH) beat estimates on strong direct-to-customer and same-store sales.
• ConocoPhillips (NYSE: COP) posted a strong fourth quarter due to rising oil prices.
• CSX Corp. (NYSE: CSX) beat expectations as increased productivity offset increased fuel costs.
• Eaton Corp. (NYSE: ETN) posted solid fourth quarter results due to growth overseas.
• Equity LifeStyle Properties Inc. (NYSE: ELS) beat expectations in the fourth quarter and offered guidance.
• Franklin Resources Inc. (NYSE: BEN) reported solid results and increased its quarterly dividend.
• Johnson & Johnson (NYSE: JNJ) posted a solid fourth quarter and affirmed its 2008 guidance.
• Microsoft Corp. (NASDAQ: MSFT) posted strong results due in part to demand for Vista.
• Nintendo Co. (OTC: NTDOY) profit soared on demand for the Wii, and the company raised is sales outlook.
• Nokia Corp. (NYSE: NOK) reported a strong fourth quarter and increased market share in handset sales.

Continue reading Earnings highlights: Apple, Microsoft, Texas Instruments, Southwest, Caterpillar, and others

Earnings highlights: Apple, Microsoft, Texas Instruments, Southwest, Caterpillar, and others originally appeared on BloggingStocks on Sat, 26 Jan 2008 08:40:00 EST. Please see our terms for use of feeds.

I've been using Vista and don't like it. But it doesn't really matter. Basically, as seen with yesterday's earnings announcement, Microsoft (NASDAQ: MSFT) is running on all cylinders.

Revenues spiked 30% to $16.37 billion and net income zoomed 79% to $4.71 billion, or $0.50 per share. And yes, a big boost came from plentiful sales of the Windows Vista operating system.

What's more, it looks like the good times will continue. Full-year guidance is for earnings of $1.85-1.88 per share, which is up from the prior forecast of $1.78-1.81.

Then again, Microsoft has a broad global footprint, with more than 60% of sales coming from foreign markets. In fact, the company is getting lots of traction from developing economies as has been the case for other biggies, such as Nokia and IBM.

Other positives: the Xbox is showing operating profits; the SharePoint collaboration tool is selling like gangbusters; and the aQuantive deal is providing some momentum in the online ad segment.

Microsoft is also making inroads in combating piracy. With more sales coming from foreign markets, this could certainly make a big difference over the long haul.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates DealProfiles.com.

Microsoft reaches another vista originally appeared on BloggingStocks on Fri, 25 Jan 2008 08:28:00 EST. Please see our terms for use of feeds.

Lenovo, the Chinese PC company, is known for producing good laptops for businesses. But with Mac sales moving up sharply, going after Apple (NASDAQ: AAPL) seems too hard to resist.

According to The Wall Street Journal, "As with many of its competitors, Lenovo is emphasizing design and style, and trying to turn notebooks into fashion accessories that reflect individual personality." Dell (NASDAQ: DELL) and HP (NYSE: HPQ) are also coming out with fancy, feature-full PCs.

The problem, of course, is that the field for Mac-like computers will become crowded very quickly. That leads to the question of whether the PCs will be able to get some market share from the Mac or actually just compete with one another.

The success of the new computers will depend on several things. One is whether consumers are willing to use Microsoft (NASDAQ: MSFT) Vista over the Apple OS, which has gotten very good reviews. Another is whether the new PCs can match most of the attractive design features of the Mac.

But the most important factor may be price. If PC manufacturers can bring most of the Mac's features to market for several hundred dollars less per machine, then they have a chance.

Douglas A. McIntyre is an editor at 247wallst.com.

Lenovo joins PC makers in fashionable catfight with Apple originally appeared on BloggingStocks on Thu, 03 Jan 2008 10:22:00 EST. Please see our terms for use of feeds.

Shares sold short in Microsoft (NASDAQ: MSFT) rose 7.6 million to 108.9 million between October 31 and November 15, according to figures from Nasdaq. The stock price of the world's largest software company moved up over 35% from Labor Day to late October, but have sold off since then. At $33, though, shares are still up 10% for the year.

Microsoft's last earnings report was especially good. It made money in every division except its online operations. Sales of its Windows OS, including Vista, moved up sharply as did revenue for its Office product line. The company's devices division, which includes sales of the Xbox 360, made money for the first time.

When the company announced earnings, it appeared that Vista sales were catching on. Global PC growth has also been robust, another indicator that Vista adoption should be strong.

More recently, however, word has begun to hit the market that many businesses may not upgrade to Vista at all. They will stay with Windows XP and wait for the next version of the operating system, which will probably be out in 2009. Any large delay or drop in Vista sales would hurt the Microsoft bottom line.

Apple Inc (NASDAQ: AAPL) has also been aggressively marketing its Mac OS as a Vista alternative. Mac sales are rising at a better rate than most PCs and this may be a sign that some operating system market share is moving to the Apple platform.

Reasons to get out of Microsoft's stock? Maybe.

Douglas A. McIntyre is an editor at 247wallst.com.

Short bet that Microsoft (MSFT) has peaked originally appeared on BloggingStocks on Wed, 28 Nov 2007 08:00:00 EST. Please see our terms for use of feeds.

Imagine a product that many people do not think works well but sells millions of copies. Well, that's Microsoft (NASDAQ: MSFT)'s operating system, Windows Vista.

According to the FT, both business and personal computer users have tried to stick with older versions of the Microsoft OS, Windows XP, but adoption is still good enough to drive outstanding earnings for the world's largest software company. As the newspaper says: "None of this, however, has had any discernible impact on Microsoft's financial fortunes. Many companies buy their software from Microsoft under an arrangement called Software Assurance, which lets them upgrade to new software whenever they like in return for a fixed annual payment."

Perhaps that is what having a monopoly is all about. Even if products are not perfect, they are adopted. Even if companies normally would not make an investment, they are on an "automatic upgrade" program.

It might be nice to think that Linux or Apple's (NASDAQ: AAPL) new OS, Leopard, would get wider adoption, but based on most figures, the Mac has no more than 5% of the global PC market and no open-source desktop program has significant market penetration.

It's good to be king.

Douglas A. McIntyre is an editor at 247wallst.com.

Microsoft Vista sells even if it doesn't work originally appeared on BloggingStocks on Mon, 19 Nov 2007 10:35:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• Walter S. Mossberg, who writes the Wall Street Journal's "Personal Technology" column, reviewed Apple's (NASDAQ: AAPL) new Leopard operating system, and said it was "better and faster than [Windows] Vista".
• Eli Lilly (NYSE: LLY) is halting two small studies of the most promising drug in its pipeline, prasugrel, which it hopes will bring over $1B a year in sales for the drug maker, reported the Wall Street Journal (subscription required).
• The Wall Street Journal reported that Microsoft Corporation (NASDAQ: MSFT) has beaten Google (NASDAQ: GOOG) in a closely watched contest, winning a minority stake in Facebook for $240M, and the right to sell advertising on the
  Facebook site outside the U.S..
• JPMorgan Chase (NYSE: JPM) is considering acquiring a stake in a Chinese brokerage as part of its expansion strategy in the country, said Gaby Abdelnour, chairman and CEO of JPMorgan Asia Pacific, reported the Financial Times (subscription required).
• The Financial Times reported that Nintendo (OTC: NTDOY) raised its earnings outlook and announced that its 1H07 profits had tripled, thanks to the success of its Wii video game console and the DS, its handheld games player.

Newspaper wrap-up: Microsoft buys stake in Facebook originally appeared on BloggingStocks on Thu, 25 Oct 2007 09:15:00 EST. Please see our terms for use of feeds.