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Wednesday, July 22, 2015

Statistics that indicate Microsoft going the Right Direction

The earnings report is out for Microsoft Corp. 

Behind the big figures, statistics indicate Microsoft going the Right Direction
Microsoft's earnings today gave plenty of reasons for one to be positive about the company although it also saw the impact of a $2.1 billion operating loss factored in from the Nokia writeoff.

Looking at the off balance sheet revenues in Microsoft, you can see that there is a $24.5 billion basically locked down, but that hasn’t been delivered yet. It is likely that Microsoft Office 365, the company's cloud-delivered, subscription-based productivity suite is the driving force for a significant amount on Microsoft's off-balance sheet revenues.

It is obvious that the company is loving subscription methods to earn money more as the company switch their business focus. Microsoft Office 365 is the biggest revenue driver of the company’s enterprise cloud offerings. And it’s growing fast: Microsoft reported today that Office 365 has added 3 million subscribers in the last quarter, bringing it to 15.2 million users total.  

Can Nadella drive the change in Microsoft?

Microsoft CEO Satya Nadella who has been praised for his effort to drive Microsoft change repeatedly called out Azure's strong growth in the enterprise via a conference call with analysts. 

Commercial cloud ARR (the Microsoft division that covers cloud services sold to businesses, which includes Office 365, Azure and Dynamics) is at $8 billion, up from $6.3 billion last quarter, and $5.5 billion the quarter before. The growth gives a lot of reason to be optimistic with the company. 

Microsoft won’t say how much of that growth is due to Azure. But the company did say that revenue doubled, and CPU usage also doubled, meaning more companies are buying Azure, straight up. Microsoft salespeople have been giving customers free Azure credits so they can kick the tires and see how it works, and it seems to have been paying off.

It is clearer that the Redmon company is shifting towards a new business model, where customers keep paying a little bit of money at a time, rather than a lot all at once. It’s painful for anybody watching the still-shrinking numbers of its legacy Windows and Office businesses, but the idea is that Microsoft will eventually reap big rewards.

Up next to watch for Microsoft: Can Windows 10 live up to the hype? 

Wednesday, July 8, 2015

Greece, one last chance to stay in Euro

Greece definitely know how to grab headlines. 

The referendum announcement to decide on whether to accept austerity or not. Then, Greece becoming the first developed country to default on the IMF. Then the capital controls being imposed. The Greeks stand by their Prime Minister, Tsipras when 61% vote No. And then, the controversial Finance Minister at that time, Yanis Varoufakis resigned After Referendum, paving the way for a last round of discussion between Greece and the Euro creditors.

One last chance to stay in Euro?

Can this marriage be saved?
The warning has been given: German Chancellor Angela Merkel warned that “only a few days” are left to reach a deal.

Euro-area finance chiefs will discuss Greece’s request on a conference call Wednesday morning, the first step toward restarting negotiations that Greece broke off late last month. The rapprochement lessens the risk that the European Central Bank will pull the plug on Greek banks, which are bleeding cash and have been shut for seven business days.

The roadmap toward a possible third medium-term aid program emerged from Tuesday’s meeting of euro finance ministers, the first since Sunday’s anti-austerity referendum and the appointment of Euclid Tsakalotos as Greek finance minister.

Finnish Finance Minister Alexander Stubb, an outspoken critic of Greece’s economic management, termed the meeting a “good conversation” with the new Greek minister.

It definitely sound more like good news though but will it be too late?

Wednesday, July 1, 2015

Analysts say Fitbit in Good Shape

Analysts say Fitbit is in Good Shape and ready to sprint. 

According to research, Fitbit is outselling rival Apple Watch and the future for the wearable tech seems to be pretty bright. 

I myself own a Fitbit Flex and find it to be a good companion to help me keep track of my daily activities. You may find more about the review on the product here: Fitbit Flex [Review]

With the news on Fitbit outselling Apple Watch and an expected increase in sales, Fitbit Inc. are surging more than 13% in Tuesday trading. The stock has jumped more than 50% since their debut on the stock exchange. Sources from Forbes website is saying that RBC Capital Markets are bullish of the company's prospect and this could just be the beginning and giving it a $45 per share price target and a rating of outperform. As of now, the counter is at $40.81 per share. 

Forbes website states that RBC analyst Mark Sue wrote in the research report: “Fitbit, with its strong brand, has grown faster than the market and is the clear market leader. The focus on connected health is a key differentiator for Fitbit and over time, we believe that the company has the opportunity to become the technology platform of choice for consumers who are looking to improve their fitness.”

The report acknowledged that competition exists and includes other popular brands like Jawbone, Garmin and Apple Watch but noted that most of these products do not overlap. For example, smartwatch buyer is generally different from someone who are looking to buy a fitness/activities tracker. 

With such a good news, it's no wonder that the stock has seen such a growth ever since its' IPO.

Fitbit Inc on some good run ever since its' IPO


Disclosure: I do not hold any Fitbit Inc stocks in any way. The research report quoted is reported on Forbes website: 
http://www.forbes.com/sites/maggiemcgrath/2015/06/30/fitbit-surging-13-after-analyst-says-its-in-shape-and-ready-to-sprint/