The Good and Bad of Satya Nadella As Microsoft's New CEO

It's official: Microsoft  (NASDAQ: MSFT  ) has named Satya Nadella as its new CEO, ending its search for new leadership. A 22-year Microsoft veteran, Nadella has led the company's important cloud and enterprise segment to riches. That gives him crucial experience in managing Microsoft's most profitable business. Last quarter, the commercial segment drove nearly 2.5 times as much operating income as the devices and consumer segment.

On the flip side, some investors may be disappointed that Microsoft didn't tap an external candidate who may have pursued dramatic strategic shifts. There had been speculation that some candidates would have been interested in killing Bing or selling off the Xbox business to focus on Microsoft's core strengths. Additionally, Bill Gates will devote more time to Microsoft's strategic direction, which is a curse and a blessing at the same time.

In this segment of Tech Teardown, Erin Kennedy discusses Microsoft's new CEO with Evan Niu, CFA, our tech and telecom bureau chief.

Our top pick for the New Year
There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.

Read/Post Comments (2) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On February 04, 2014, at 11:20 PM, techy46 wrote:

    Staya needs to figure how to use Microsoft's enterprise ecosystem successes to monetize them into cloud based mobile consumer successes. He should start by turning Microsoft's IE Do Not Track feature into a full blown anti-adware dashboard that allows IE users to easily block all ads and cookies and other privacy invasions. Turn Google's major source of revenue into a major source of embarrassment.

  • Report this Comment On February 05, 2014, at 5:16 AM, Tuxster12345 wrote:

    Microsoft should have gone outside to find a new CEO. An outsider would bring fresh blood and new thinking to Microsoft's corporate environment.

    However, I don't think Bill Gates was ever going to let this happen, as I'm sure he still sees Microsoft as "his" company. In the same way that Jerry Yang wanted and tried to keep Yahoo! "his" company.

    Microsoft's board should have done what I think is best for the shareholders and the company.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2823798, ~/Articles/ArticleHandler.aspx, 8/27/2015 3:34:39 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Evan Niu

Evan is a Senior Technology Specialist at The Motley Fool. He was previously a Senior Trading Specialist at a major discount broker. Evan graduated from the University of Texas at Austin, and is a CFA charterholder.

Today's Market

updated Moments ago Sponsored by:
DOW 16,423.20 137.69 0.85%
S&P 500 1,959.31 18.80 0.97%
NASD 4,747.56 50.03 1.06%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/27/2015 3:18 PM
MSFT $43.24 Up +0.53 +1.25%
Microsoft CAPS Rating: ***