What MSFT Has Done With Its Cash In Recent Years #1-Return Cash To Shareholders – While companies such as Google and Apple have continued to come under fire for their reluctance to return cash to shareholders, Microsoft has been able to both pay out dividends and buy back shares.
#2-Invest In Key Businesses – Microsoft has like Google been involved in trying to build other businesses but I would argue that at least in some regards, they’ve had better success. What exactly? -
XBox Console: A few years ago, many thought the venture would fail but it has proved to be incredibly valued. Not only is it the top gaming console on the market but it is giving Microsoft a very valuable lead going into the transformation of the living room. I caution all of you to not underestimate this part. Google, Apple, Sony and others are all trying to lead this effort to transform the living room where users might end up switching from cable to a subscription from one of these companies. Microsoft already has its foot in the living rooms, has millions of users already paying a monthly bill and it will not be that big of a stretch to continue adding content and services to what is already much more than a gaming console.
-Online Businesses: There is no doubt that these businesses have been money losing businesses for several years now but Bing and other services have at least made themselves the top alternative to Google, has a great relationship with Facebook thanks to its early investment, etc. Not many companies would have had the resources to even make a run at these businesses but Microsoft has set itself in a great position in what is quickly becoming a very connected world.
A Look At the Microsoft (MSFT) Numbers Let’s take a look at the numbers for Microsoft:
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What are your thoughts on Microsoft? Do you think it’s a good purchase this price?