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.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

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.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

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. The show is also heard weekly on dozens of 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. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.

 


Compare Brokers