The honeymoon is over for Microsoft Chief Executive Satya Nadella. Quarterly earnings fell as the company’s traditional bread-and-butter cash machines faltered. Growth in cloud services was not enough to soothe investors, who have been driving share prices down amid a storm of doubt. It would be crass to call it karma.
The hit pieces have begun (again) even though Steve “Lost Decade” Ballmer isn’t there to kick around anymore. Even the sober columnist James B. Stewart of the New York Times used Microsoft as the laggard counterpoint to his piece lauding Apple, which now has twice the market capitalization of the Beast of Redmond:
Like many successful companies, Microsoft nurtured its dominant position, but at the risk of missing potentially disruptive innovations.
I’ll have more to say about this next week. In the meantime, there’s no disputing Microsoft’s position as critical to the Puget Sound economy, and the stakes of its attempt at transformation. What do you think:
This Week’s Links:
• Trans-Pacific Partnership: Don’t trade away our health | Joseph Stiglitz
• Revolving door between Fed and banks spins faster | Bloomberg
• The Baltic Dry Index — which perfectly timed the 2008 crash — hit a 28-year low | Business Insider
Today’s Econ Haiku:
They brung (flew) us to this dance
Now Delta’s flirting