Microsoft’s Numbers Are Up, But For How Long?


topofworld.jpgMicrosoft’s shares rose to the highest they’ve been in six years yesterday reaching $35.86 a share, an increase of 12%. The company reported revenues of $13.76 billion for the latest quarter, increasing by 27% over last year. Profit rose 23% to $4.29 billion from this time last year as well, according to TimesOnline.

The improved numbers have been attributed to the increased sales in PCs and the heightened mission by Microsoft to fight the war on piracy. The sales of Windows products were also up 25% to over $4.14 billion and Office sales rose by 20% to $4.11 billion.

There was a rise of 90% to $1.9 billion to the entertainment and devices group, credited to the release of Halo 3 which reportedly earned $170 million in the first 24 hours of sales.

Despite the recent growth, the company’s future growth is dependent on its newer online advertising offerings. The purchase of aQuantive is said to help the company’s position in the online ad race. 

David Mitchell Smith, analyst at Gartner said to TimesOnline “Online advertising still makes up an extremely small part of Microsoft’s revenues, but the goal at the moment is very much diversification of revenues. There’s a lot of pressure on the traditional license-based approach to software sales.”


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