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Posted March 16, 2013 by Viraj Shah in Technology
 
 

Series of bad launches not helping Microsoft Corporation (NASDAQ:MSFT) – GOOG, AAPL, BBRY

microsoft-surface-tablet
microsoft-surface-tablet

Northern, WI 03/16/2013 (avauncer) -Microsoft Corporation (NASDAQ:MSFT) has suffered from a series of bad launches that has affected of the company’s stock in the market. The company is struggling to regain its market share which it has lost to Apple Inc. (NASDAQ:AAPL) and Google Inc. (NASDAQ:GOOG). The failure of the company to generate interest for users in selling its 128GB surface tablet along with shortage of Windows 8 PC’s has seen analysts commenting about the company’s ability to correctly gauge market demand for its products.

Microsoft Corporation is the Seattle area based software developer, known for its famed Windows operating system for personal computers. The stock price of Microsoft Corporation, trading at around $28 per share, is around 12.5% down from its 52 week high of $32 per share. The company has a price to earnings ratio of around 15 and is liquid, with a quick ratio of 2.6. The debt to equity and debt ratio stands at 77% and 44% for Microsoft Corporation, based on fourth quarter numbers.

Meanwhile the fortunes of near competitor Apple Inc. have not been much rosier. News that the tablet market once dominated by the company’s iPad will soon be replaced by Google’s android operating system. The company is also anticipating a serious challenge from its competitor Samsung Electronics Co. Ltd. (KRX:005930) after it released Galaxy S IV smart phone and Research in Motion Ltd.’s (NASDAQ:BBRY) BlackBerry Z10 touch screen model.

Apple Inc. is a Cupertino, California based maker of personal computers and software. The price earnings ratio of the company is lower than that of Microsoft Corporation at around 10, and a liquidity measure of 1.3 which is half of what Microsoft Corporation. The company’s debt to equity ratio is around 54% and its debt ratio is around 35%.

Technology giant Google Inc. seems to be fairing much better compared to Microsoft Corporation and Apple Inc. The company’s Android operating system is gaining prominence as a standard in many of the smart phones competing with Apple Inc. and has financial muscle which can be seen in its quick ratio which stands at 3.5.

Google Inc. is based in Mountain view, California. The company, a global technology company, has a debt to equity ratio of around 31% and debt ratio of around 24%, both of which puts the company in a much better financial position than its competitors.

Management should take heed of the recent mistakes which have damaged the reputation of Microsoft and re-examine its priorities in order to make better decisions. Shares of Microsoft Corporation (NASDAQ:MSFT) are down by 0.36% to close at $28.03.


Viraj Shah

 
Viraj Shah has done M.Com (Finance) and currently pursuing CFP. He is a technical analyst who tracks US markets along with other global markets like India very closely. He is very passionate about stocks and believes that money can always be made in market.