Microsoft invests an additional $2 billion in web services
Microsoft will invest $2 billion more than expected in various technologies. Much of the investment to go toward building an ad-supported online service business similar to those of Google and Yahoo.
Wall Street was shocked by additional spending plans announced on Thursday, sending shares down more than 11 percent on Friday. Microsoft arguably is coming from behind, having ceded the early advantage in online advertising.
But history smiles in Microsoft's favor.
"If you look at Microsoft historically, it's usually had a second-mover advantage," said Todd Lowenstein, a co-portfolio manager for HighMark Capital Management's Value Momentum Fund who holds shares of Microsoft.
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