Microsoft shares surged more than 4% on Wednesday to their highest price since mid-2000. The current stock price is at 44.07, up 1.62 from yesterday, a 3.82% increase from the morning. Yesterday, Intel announced their quarterly results which showed a modest growth in PC market. I guess, that was the reason investors are going behind Microsoft shares. Intel’s PC Client Group saw a revenue of $8.7 billion, up 9 percent sequentially and up 6 percent year-over-year. Similarly, Microsoft’s Windows division revenue decline should have stopped this quarter. However, I expect Microsoft to post less than expected earnings because of the Nokia Devices and Services division acquisition. Microsoft bought a loss making venture, so it should affect Microsoft’s bottom line.
Also, Microsoft is planning to layoff thousands of employees which will result in lots of costs associated with their compensation and severance packages. If you are a Microsoft investor, are you happy with their performance these days?