Why didn't I think of this?
Instead of paying attention to Yahoo!'s
After all, Yahoo!'s report would be a fair measuring stick as to how much the company is worth, but Microsoft's performance would dictate how desperate the software giant is in nabbing Yahoo!.
Stagnancy has finally hit Microsoft. Revenue inched just 0.4% higher to nearly $14.5 billion. Earnings per share fell from $0.50 to $0.47, and EPS would have been worse if the company hadn't spent the past few quarters aggressively buying back its shares.
The really sad part is that the company was saved by brisk sales of its Xbox 360 consoles. The Xbox saving Microsoft's waning software sales -- imagine that.
One can argue that things aren't really so bleak. There are always hiccups in the software upgrade cycle. However, even if Microsoft bounces back, it's clear that the company needs to diversify. But Yahoo! may not be the answer. Two laggards don't necessarily add up to a leader. In any case, it's clear that Microsoft's next major purchase will have to turn both heads and prospects.
News to go
Yahoo! and Microsoft may be dot-com slowpokes, but things get a lot headier when you travel to China to check up on Baidu.com
Speaking of Yahoo! -- which is becoming the Kevin Bacon of this morning's commentary -- the company struck a three-year deal with CNET Networks
The American Express
- Ford Focus: Not just a car, but a serving suggestion.
- Pick up the game in pickup trucks.
- Our cars can play Michael Bolton while our shareholders are simply bolting.
- Plan B is to bring back the Model T.
Have a great day out there.
Longtime Fool contributor Rick Munarriz believes that breakfast is an important part of the day. He does not own shares in any companies in this story. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.