In theory, the market should be pricing in based on future potential. As it has become increasingly clear this past decade, the market is not rational.
replyIn a bubble, everyone looks like they’re doing well. Don’t confuse that with an actual strategy.
replyBut I compared it to sp500. Even QQQ only 6x’d in that timeframe.
replyWhich bubble are you talking about? Even if you remove everything after January 1 2020, it’s still up 4x since nadella took over. And that follows a decade of stagnation under Balmer.
What numbers do you know of that show that Microsoft hasn’t been successful since nadella took charge?
Complain all you want about the products, but the stock under nadella has been a success.
Sure, but how much of that had to do with the design and implementation of Windows? You know, the OS that runs half of the modern economy. Microsoft is just milking it without a coherent vision.
replyMaybe financially MS is successful but at the cost of flagship product becoming adware and people fleeing slowly away
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replyCloud was taking off at the same time. Anybody in his spot would have been successful.
replyStock price going up is not the success criterion for a business. Making money is. And Microsoft's decisions are undermining their ability to make money in the future, which makes them bad decisions even if the stock price has gone up or if they make more money in the short term.
reply> Stock price going up is not the success criterion for a business. Making money is.
replyMicrosoft’s net income is up roughly 5.4x from ~$22B in 2014 to $119B today. Profit margin also expanded, from ~25% net margins in 2014 to over 36% today.
If the market agreed, the stock wouldn’t go up.
replyIf your only metric is stock price, yes. That’s the value proposition of enshittification.
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