Why is Microsoft Corporation Soaring Today?

Shares of Microsoft Corporation are soaring nearly 4% higher today, driven by news of a brand new market for Microsoft Office.

Mar 18, 2014 at 2:00PM
Longview

Microsoft (NASDAQ:MSFT) shares are soaring sky-high today. The stock jumped as much as 4.8% overnight before settling down to a still-impressive 3.8% one-day gain.

The price move adds 10 points to the Dow Jones Industrial Average (DJINDICES:^DJI), driving the index higher while investors wait on notes from today's Federal Open Market Committee meeting. It's not the Dow's biggest points gainer, because Microsoft's roughly $40 share price makes it an afterthought in this price-weighted system.

Visa (NYSE:V) shares are up just 0.9% on nothing but general market buzz and Brownian motion, but Visa's triple-digit share price translates this small change into a 13-point Dow boost.

Unlike Visa, Microsoft actually has some solid news behind its single-day gain.

Newly appointed CEO Satya Nadella is taking the bull by its horns. Nadella has scheduled a press conference for March 27, and Reuters' anonymous sources say that he'll use this event to launch a brand new version of Microsoft Office designed to run on Apple (NASDAQ:AAPL) iPads.

Yes, this is big news.

Msft

Satya Nadella is moving markets today. Image source: Microsoft.

Apple has shipped about 145 million iPads to consumers, creating a very large computing platform that Microsoft has left untapped so far. Sure, you can use Microsoft's online Office suite on the iPad's Safari browser, but that's a far cry from selling a fully featured Office suite for Apple's tablets.

It's unclear how much Microsoft might charge for iPad-optimized Office tools, but the market reaction isn't really tied to hard numbers anyhow. Nadella unveiling an iPad-bound Office version would be more of a directional statement, demonstrating that Redmond now is open to exploring and exploiting rival platforms. To date, Microsoft has been forcing the unpopular Windows 8 and Windows RT environments on would-be mobile users with productivity needs.

So Microsoft is about to open up a brand new market. It'll be a little uncomfortable at first since Microsoft doesn't control the iPad's software environment, but then Satya Nadella is not Steve Ballmer. This is Nadella's chance to show that he's less of a control freak and more open-minded about working with the competition. If he delivers on that as-yet unspoken promise, Microsoft will carve a respectable place for itself in the post-PC era.

That's probably worth more than 10 measly Dow points in the long run, but investors are only working with a rumor at this point. That Mar h 27 press conference could unlock a much bigger gain, if Nadella plays his cards right.

What's the next "Next Big Thing?"
They said it couldn't be done. But David Gardner has proved them wrong time, and time, and time again with stock returns like 926%, 2,239%, and 4,371%. In fact, just recently one of his favorite stocks became a 100-bagger. And he's ready to do it again. You can uncover his scientific approach to crushing the market and his carefully chosen six picks for ultimate growth instantly, because he's making this premium report free for you today. Click here now for access.

Anders Bylund has no position in any stocks mentioned. The Motley Fool recommends Apple and Visa. The Motley Fool owns shares of Apple, Microsoft, and Visa. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

1 Key Step to Get Rich

Our mission at The Motley Fool is to help the world invest better. Whether that’s helping people overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we can help.

Feb 1, 2016 at 4:54PM

To be perfectly clear, this is not a get-rich action that my Foolish colleagues and I came up with. But we wouldn't argue with the approach.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich" rated The Motley Fool as the #1 place online to get smarter about investing.

"The Motley Fool aims to build a strong investment community, which it does by providing a variety of resources: the website, books, a newspaper column, a radio [show], and [newsletters]," wrote (the clearly insightful and talented) money reporter Kathleen Elkins. "This site has something for every type of investor, from basic lessons for beginners to investing commentary on mutual funds, stock sectors, and value for the more advanced."

Our mission at The Motley Fool is to help the world invest better, so it's nice to receive that kind of recognition. It lets us know we're doing our job.

Whether that's helping the entirely uninitiated overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we want to provide our readers with a boost to the next step on their journey to financial independence.

Articles and beyond

As Business Insider wrote, there are a number of resources available from the Fool for investors of all levels and styles.

In addition to the dozens of free articles we publish every day on our website, I want to highlight two must-see spots in your tour of fool.com.

For the beginning investor

Investing can seem like a Big Deal to those who have yet to buy their first stock. Many investment professionals try to infuse the conversation with jargon in order to deter individual investors from tackling it on their own (and to justify their often sky-high fees).

But the individual investor can beat the market. The real secret to investing is that it doesn't take tons of money, endless hours, or super-secret formulas that only experts possess.

That's why we created a best-selling guide that walks investors-to-be through everything they need to know to get started. And because we're so dedicated to our mission, we've made that available for free.

If you're just starting out (or want to help out someone who is), go to www.fool.com/beginners, drop in your email address, and you'll be able to instantly access the quick-read guide ... for free.

For the listener

Whether it's on the stationary exercise bike or during my daily commute, I spend a lot of time going nowhere. But I've found a way to make that time benefit me.

The Motley Fool offers five podcasts that I refer to as "binge-worthy financial information."

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. It's also featured on several dozen radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable ... and I don't say that simply because the hosts all sit within a Nerf-gun shot of my desk. Rule Breaker Investing and Answers contain timeless advice, so you might want to go back to the beginning with those. The other three take their cues from the market, so you'll want to listen to the most recent first. All are available at www.fool.com/podcasts.

But wait, there's more

The book and the podcasts – both free ... both awesome – also come with an ongoing benefit. If you download the book, or if you enter your email address in the magical box at the podcasts page, you'll get ongoing market coverage sent straight to your inbox.

Investor Insights is valuable and enjoyable coverage of everything from macroeconomic events to investing strategies to our analyst's travels around the world to find the next big thing. Also free.

Get the book. Listen to a podcast. Sign up for Investor Insights. I'm not saying that any of those things will make you rich ... but Business Insider seems to think so.


Compare Brokers