In the wake of Vista and the failed Yahoo bid, M$ says they will buy back another $20 billion of their own stock to shore up its falling value.
Steve Ballmer, whose botched bid for Yahoo! Inc. helped drive the stock down 17 percent since February, is about to make it up to shareholders with a buyback of as much as $20 billion
Analyst Jane Snorek at First American Funds in Minneapolis said she has lost confidence that Ballmer will ever get it right on Internet businesses. Her firm sold most of its stock
These are the same issues that have plaguing M$'s credibility and sockprice for months, or years if you look at the not yet matched price before the 1999 crash. Their current weakness is so apparent that Time Magazine noticed. Others speculate fraud is responsible for much of M$'s earnings and that things may be worse than quarterly reports claim. Either way, it's hard to ignore M$'s evaporating cash pile. The Yahoo deal would have put them in debt, another massive bayback will leave them with little cash or debt.
August 8 - Analyst David Hilal says the size of the buyback should be $50 billion. That would put the company in massive debt. These rumors have pumped the price up
Is Microsoft Out of Ideas?
... those of you who would like to see a resurgent Microsoft stock trading higher based on organic growth and compelling new product introductions, you may have to wait for quite a while. In the meantime, financial shenanigans appear to be the rule.
November 20 - With M$ stock hitting levels not seen since 1997, the company starts a $20 billion debt issue for the buy backs.