Microsoft stock price nearly flat today after Surface reveal

We have seen tons of reactions and opinions about the Microsoft Surface tablet since today's full reveal. But what do the people who trade in Microsoft's stock feel about it? On the whole, the reaction seemed to be a very firm, "Meh?"

After rising briefly in the middle part of the trading day on NASDAQ, Microsoft's stock price settled at the end of the day at $29.49 a share. That's a dip, compared to the previous day's trading, of just two cents, or 0.07 percent. That would seem to suggest that investors don't think the Surface will be a disaster for Microsoft, but they also don't seem to believe it will be a huge boost for the company's financial position either.

By contrast, Apple's stock price went up by 2.4 percent in trading today. Apple announced earlier today it would be holding a press event on October 23rd, where the company is highly expected to reveal a smaller version of its iPad and possibly more hardware products.

Microsoft is scheduled to announce its financial earning for the third quarter of 2012 on Thursday after the end of trading. It's almost a certainty that the company will reveal more information on its Surface launch plans, as well as Windows 8, Windows Phone 8 and Office 2013, as part of its financial press release and later during its conference call with analysts.

Source: NASDAQ.com | Image via Microsoft

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Investors aggressively do not care about MSFT.

Stock pricing isn't merit-based. It doesn't increase as a reward in response to a company releasing a good product.

Unfortunately, there exist other stocks where investors are happy to make their money, and that's what they care about. Hard to blame them from that perspective, but in means you can't expect MSFT to budge much on any rational-seeming basis.

See also: Windows 7, Kinect, etc.

jasonon said,
microsoft has the most stagnant stock i have ever seen

I would completely agree. It doesn't budge on anything.

The fact that Microsoft's stock price hardly moves shows that it has matured and it a sollid investment. The stock price matches the proftiability of the company, which is very high. Investors have become comfortable with the company and don't react like loons on a little good or bad news.

The value of Apple and Google is for a part stil build on air. Their shortyterm succes has let to it and if they can't keep it up in the comming years then it will come smashing down. For example if the next iPhone 'only' sells 90% of what the iPhone 5 sold, some investors will go insane.

Microsoft's stock value will rise once real value has been created, as it should be.

Ronnet said,
The fact that Microsoft's stock price hardly moves shows that it has matured and it a sollid investment. The stock price matches the proftiability of the company, which is very high. Investors have become comfortable with the company and don't react like loons on a little good or bad news.

The value of Apple and Google is for a part stil build on air. Their shortyterm succes has let to it and if they can't keep it up in the comming years then it will come smashing down. For example if the next iPhone 'only' sells 90% of what the iPhone 5 sold, some investors will go insane.

Microsoft's stock value will rise once real value has been created, as it should be.

It has been stagnant for ten years..... unfortunately.

Ronnet said,
The value of Apple and Google is for a part stil build on air. Their shortyterm succes has let to it and if they can't keep it up in the comming years then it will come smashing down. For example if the next iPhone 'only' sells 90% of what the iPhone 5 sold, some investors will go insane.

Microsoft's stock value will rise once real value has been created, as it should be.

Apple has somewhat less than double of what Microsofts earnings are at the moment. It's not "air" if they rake in money. The dotcom bubble was air, because the those companies made huge losses, while being speculated to make profits that never appeared.

You don't know if Microsofts stock will rise. On the contrary there is a substantial risk it will fall if Windows 8, Surface and their large commitment on the mobile market fails to make any impact.

apple: lost half its market share to android tablets in a year. stock shoots up.
apple: lost 2/3s of its marketshare to android phones in 3 years. stock shoots up.

msft: makes machine that turns lead into gold: stock nose dives.

ah wallstreet.

neonspark said,
apple: lost half its market share to android tablets in a year. stock shoots up.
apple: lost 2/3s of its marketshare to android phones in 3 years. stock shoots up.
msft: makes machine that turns lead into gold: stock nose dives.
ah wallstreet.

Don't make up things.

Apple didn't lose market shares in the mobile segment. While Android has taken a huge market share, the loosers are Symbian, RIM and Windows Mobile.

Here is an image that displays shares at least somewhat accurately
http://upload.wikimedia.org/wi..._Smartphone_Sales_Share.png

neonspark said,
apple: lost half its market share to android tablets in a year. stock shoots up.
apple: lost 2/3s of its marketshare to android phones in 3 years. stock shoots up.

msft: makes machine that turns lead into gold: stock nose dives.

ah wallstreet.

Profitability is what drives stock prices.

Microsoft has many outstanding shares, so it would take massive volumes in trading to move the price at all significantly. They have over 8 billions shares. No point in looking at their stock price to see how investors feel.

All 50 people who are deluded into thinking that Windows 8/Surface is the next big thing rather than just another product seem to congregate on Neowin. Let's be realistic here; it is an already saturated market with a product that has even less application support than existing Windows (only existing HTML5 apps work on RT, native apps need to be rewritten for RT). Other products in the marketplace already have HTML5 app support and a full ecosystem of native apps. There is nothing revolutionary about the Surface, only evolutionary.

It is good to see that X86 Tablets are finally slimming down because there is a market for these (as it has x86 compatibility) but all of the OEMs are bringing out slimmer x86 tablets too.

They keyboard is good if you always use it on a desk (won't support the tablet on your lap) and will be readily cloned for the iPad and Android tableys from 3rd party accessory makers for those that would like this.

Windiws RT is no different to other tablets, except for the Modern UI alone. The modern UI is unintuitive on Windows 8 because there are a lot of hidden gestures required to use it which go unexplained. At least WP7 did not need hidden gestures and was quite intuitive.

Simon- said,
All 50 people who are deluded into thinking that Windows 8/Surface is the next big thing rather than just another product seem to congregate on Neowin. Let's be realistic here; it is an already saturated market with a product that has even less application support than existing Windows (only existing HTML5 apps work on RT, native apps need to be rewritten for RT). Other products in the marketplace already have HTML5 app support and a full ecosystem of native apps. There is nothing revolutionary about the Surface, only evolutionary.

It is good to see that X86 Tablets are finally slimming down because there is a market for these (as it has x86 compatibility) but all of the OEMs are bringing out slimmer x86 tablets too.

They keyboard is good if you always use it on a desk (won't support the tablet on your lap) and will be readily cloned for the iPad and Android tableys from 3rd party accessory makers for those that would like this.

Windiws RT is no different to other tablets, except for the Modern UI alone. The modern UI is unintuitive on Windows 8 because there are a lot of hidden gestures required to use it which go unexplained. At least WP7 did not need hidden gestures and was quite intuitive.

well so it sold out already. seems you're way off.

well, honestly...

Surface isn't exactly what runs the show in Microsoft...

Yes, it is impressive, but there are allot of other numbers investors are looking into, other than surface. They (ms) have to prove that this hardware is wanted, once so it will affect the stock price.

Much like any other company who announces something, its not what innovation you have.. but how it is executed.

i am not a doomsday fanatic, but i would suggest that this is a bad sign for Microsoft. Ofcourse they wont fail, since its impossible when you are the only person in town selling a certain product, but it doesn't also help their bottom line. I think the world will be waiting for Windows 9 or 10 before they buy a new machine/os.

rippleman said,
i am not a doomsday fanatic, but i would suggest that this is a bad sign for Microsoft. Ofcourse they wont fail, since its impossible when you are the only person in town selling a certain product, but it doesn't also help their bottom line. I think the world will be waiting for Windows 9 or 10 before they buy a new machine/os.

Consider for a minute MS's stock price over the last say 10 yrs. It's been pretty much the same, hovering between the upper 20's and low-to-mid 30's. So a little drop doesn't really mean much.

myxomatosis said,
Many predicted the failure of Windows 8. It's beginning.

Yes, because the precipitous drops of Apple's stock after each of their announcements definitely heralded the failure of their products.

siah1214 said,

Yes, because the precipitous drops of Apple's stock after each of their announcements definitely heralded the failure of their products.

Microsoft's stock never moves much because they have a godzillion outstanding shares compared against google or apple.. and no one expects pre-orders to push the stock anywhere and if you look at the historical data - since MS started pushing Windows 8 their stock has improved, i wouldn't expect any fluctuations until they actually report earnings..

myxomatosis said,
Many predicted the failure of Windows 8. It's beginning.

Let's suppose you are correct, wouldn't it mean that the stock price would drop? If investors knew that Surface, Win8, etc. was going to be a failure, the price would not stay steady. They would lose confidence in the stock price, the number of sales they were going to have, and the amount of money they were going to make. Microsoft cant go on selling Win7 at the rate they currently are, as eventually the market will become saturated, and, if as you claim, Win8 were a failure then people would never buy it.

Of course, if we were to say the same things you are, but about Apple, you would be yelling hater over and over.

aviator189 said,
because the investors are undervaluing microsoft??

Investors look for expansion, growth and increased market shares, which will raise the stock and thus earn them money. Microsoft are very successful in certain areas, but those are fairly stable. On the contrary MS has failed to make any impressions in new expansive markets like the mobile ones. Therefore Microsoft stock sits pretty much flat, because investors don't see potential for profit.

siah1214 said,

Yes, because the precipitous drops of Apple's stock after each of their announcements definitely heralded the failure of their products.

A good advice from a MS shareholder: expand your horizon and check a five years chart about MS and Apple stock values.....

FMH said,
Investors are probably too busy pre-ordering Surface, rather than buying more Microsoft stocks...

Lol agreed. Stock price means little to nothing-- Apple's stock has dropped every single time they released a new product.

FMH said,
Investors are probably too busy pre-ordering Surface, rather than buying more Microsoft stocks...

This indicates that the announcement is exactly in-line with expectations raised by pre-release hype. You tend to see dips in products that are leaked way before announcement or GA due to the "WinFS" effect.

StevenJ said,
Lol agreed. Stock price means little to nothing-- Apple's stock has dropped every single time they released a new product.

Agree - stock prices very rarely represent the value of the company accurately - anyone remember the dot-con days where shares were +$100 and the companies were losing money hand over fist? In the end it is all speculation with little in the way of objective measurement as to the success or failure of a given company.

StevenJ said,

Apple's stock has dropped every single time they released a new product.

Which has to tell you something about the product/s they're releasing...