Motley Fool is alarmed by Microsoft's financials

[Bodhesatva]

Zyzomys said:

Here is the link for Microsoft's latest financials released January 24, 2008:

http://www.microsoft.com/msft/earnings/FY08/earn_rel_q2_08.mspx

Here are some highlights:

• $6.48 Billion Net Income for Three Months Ended December 31, 2007 ($3 Billion more than same time period in 2006)
• Entertainment and Devices Division (Xbox 360, Live, and Zune) recorded $357 million Net Income for Three Months Ended December 31, 2007 ($600 Million more than same time period in 2006)
• Entertainment and Devices Division (Xbox 360, Live, and Zune) recorded $524 million Net Income for Six Months Ended December 31, 2007 ($900 Million more than same time period in 2006)
• Entertainment and Devices Division is on track to record a $1.2 Billion Net Income for this fiscal year (my analysis!)
  

As for MS slowing growth:

• Six Months Ended December 31, 2006 - $ 7,946 Billion Net Income
• Six Months Ended December 31, 2007 - $12,399 Billion Net Income
• The Net Income growth is $4 Billion or 50% Growth.

Read the article again from the original post and then look at MS's financial statements. I do not see how anyone can seriously say this is a company in decline.

 

This is really all people need to see. I actually very much like Motley Fool, and I certainly do have some complaints about Microsoft (as I do any company), but honestly, how can people see their financial data and say Microsoft is in trouble?

Their profits are up nearly 50 percent from last year. They are earning somewhere in the neighborhood of 5-6x as much profit as Sony. This thread strikes me more as a "I don't like Microsoft" tangent than it does real critical analysis of Microsoft's position.

Red Ring of Death. Flawed OS transition. Lack of penetration of the Zune. Yes, these are all legitimate complaints, but to take these complaints and suggest that Microsoft is in trouble? Please. They are still clearly the big dog in gaming and software in general, and just as clearly, that isn't changing.