Analysis Of The World 's Most Valuable Brands Essay
At number two, Microsoft is one of the biggest companies in the technology industry; in second place Microsoft has a market capitalization of $340.8 billion. Microsoft has led the sales of computer software for numerous years, but their progression has decreased since the market collapse more than a decade ago From June of 2014 to June of 2015, Microsoft saw a 4% drop in their net income (Warren).
Microsoft’s Financial Analysis
In Microsoft’s 2015 fiscal year they had a 2% increase in net income resulted in a 4% decrease in their stock price (Warren). Increases in net income do not routinely mean an increase in stock prices; stock price is mainly driven by growth of earnings. If experts predict earnings to be above average Microsoft’s stock prices will usually rise, and if Microsoft report earnings higher than the experts predicted, the stock prices will characteristically raise more. Stockholders analyze earnings in stock market growth in estimated earnings and average industry earnings of that company. Microsoft’s earnings per share have risen every year, but the percentage increase over the years has decreased. Investor’s has noticed this trend and are not pleased; a 0% change in stock price over the last 4 years would make any investor skeptical about buying their stock. In my opinion Microsoft needs to either develop a new product to enter into new markets or set new trends to remain competitive in the technology…