Tuesday, November 19, 2013

Why Microsoft Needs the Next Marissa Mayer

Steve Ballmer is out as Microsoft (NASDAQ: MSFT) CEO.


Tuesday, November 19, 2013



Why Microsoft Needs the Next Marissa Mayer
by Chris Preston


Editor's Note: Microsoft more than doubled its dividend payouts over the past decade - which is great. But our income expert Andy Crowder recently uncovered a way to double Microsoft's dividends in a matter of months - not years. This Thursday at 2 pm, he reveals exactly how in a free, live teleconference event. Click here to sign up.


Steve Ballmer is out as Microsoft (NASDAQ: MSFT) CEO.


After 33 years with the software giant, the last 13 spent as its CEO, Ballmer was essentially forced into retirement by Microsoft's board of directors. Once the richest company on the planet, Microsoft has lagged behind Apple and Google in recent years in key consumer markets, namely mobile.


Microsoft still dominates the PC market. But PCs are becoming ancient. The company's board wants to attract younger and hipper consumers. At 57, Ballmer realized he might not be the right person to lead that charge.


"Maybe I'm an emblem of an old era, and I have to move on," Ballmer told The Wall Street Journal.


If Microsoft wants to enter the "new era," it might want to take a page from Yahoo's book.


Until the summer of 2012, Yahoo! (NASDAQ: YHOO) looked like a dying company, one that peaked in the late '90s. Now it's in the midst of a resurgence, growing profits and shelling out a billion dollars to buy social-blogging platforms.


The reason for the turnaround? Marissa Mayer.


Prior to hiring the 37-year-old Mayer as CEO two summers ago, Yahoo! had cycled through four CEOs in four years. Mayer has brought stability, growth and - most importantly - relevance back to a company that seemed on the brink of going the way of AOL (NYSE: AOL).



Triple your dividends with one stock -- starting Nov. 27


With so many investors grabbing up shares of blue chips, yield is getting hard to come by. In fact, the average yield of the Dow has sunk to 2.1%. But our group of investors isn't worried. We're collecting big monthly dividends... up to $550 every 30 days...  from a little-known investment that yields a whopping 12%! If you'd like to tap into this income stream, and earn up to triple the dividends of even the best blue chip, click here for our full report on this opportunity. 



Since Mayer's hiring on July 16, 2012, here are some of the improvements Yahoo! has made:

  • Yahoo! shares have more than doubled. When Mayer took the reins, Yahoo! shares were going for $15.60 a pop. Yesterday the stock closed at $34.97- a return of 123.5% in the Mayer era.

  • Profits increased year over year in each of Mayer's first four quarters on the job.

  • In May, the company bought social-blogging site Tumblr for a cool $1.1 billion - its most expensive acquisition in a decade. Founded in 2007, Tumblr has attracted 300 million monthly visitors wooed by the site's platform, which allows users to post text, photos, videos and other materials "from anywhere." Only a company with cash to spend can make that kind of deal.

  • With Mayer at the helm, Yahoo! has expanded its mobile footprint by creating new apps - a weather app for Apple (NASDAQ: AAPL) iPhone users, an email app for other smartphones, and an app that allows iPhone and iPad users to view and share photos using its Flickr service.

  • The company completed a $7.6 billion deal with Chinese e-commerce group Alibaba last September. The deal, which was years in the making, netted Yahoo! $1.3 billion to finance acquisitions - money the company has since been putting to good use.

Yahoo! was in the dumps for years as the company lacked true leadership, direction and innovation. With Marissa Mayer running the show, Yahoo! is suddenly hip again, snatching up a popular social media company like Tumblr the way Facebook (NASDAQ: FB) did when it bought out Instagram last year.


Investors trust Mayer. And right now the 38-year-old CEO is leading an improbable resurgence at a company that 16 months ago appeared beyond saving.


Microsoft's position isn't as precarious as Yahoo's was before Mayer came on board. The company still managed to increase EPS 29% in the last year on Ballmer's watch.


But if Microsoft wants to close the ever-widening gap between itself and Apple and Google, it may want to skew younger in its next CEO hire.


In short, Microsoft needs to find its Marissa Mayer.


Good investing,


Chris Preston

Richmond, Vermont




Further Reading:


"If there were no such thing as dividend reinvestment programs (DRIPs), I probably would never have been able to afford my first house." Read more here: How a DRIP Helped Pay for My First Home


"It's usually a challenge to select one single growth trend that is more powerful than the rest. But that's not the case these days - it has to be the boom in U.S. oil and gas production." Read more here: My Favorite Growth Trend



Ian Wyatt has found 3 stocks that pay dividends so big -- you can retire on them. The Wall Street Journal calls them, "mega-dividends." These stocks have a history of consistently RAISING their dividends... quarter after quarter. In fact, one of these cash-cranking companies hiked its dividend 10-fold! So, if these ever-increasing payouts sound good to you...


Click here for all the details.

Popular Analysis from Wyatt Research

Thursday, November 14, 2013
Potbelly is the Chipotle of Sandwiches
Fast casual dining stocks have been one of the hottest sectors of the market throughout the past couple of years.

Wednesday, November 13, 2013
Great Companies vs. Great Investments

The secret to making money in the stock market is NOT to simply invest in great companies, but to identify great investments. That may come as a surprise, but it's true.

Tuesday, November 12, 2013
Three Recent IPOs that are Better than Twitter
Give Twitter (NYSE: TWTR) credit: its IPO lived up to the hype. Twitter's stock shot up by 73% just one day after going public above its expected range at $26 per share last week.

Latest Daily Profit


Monday, November 18, 2013
My Favorite Growth Trend
It's usually a challenge to select one single growth trend that is more powerful than the rest. But that's not the case these days - it has to be the boom in U.S. oil and gas production.


Friday, November 15, 2013
Retail Recovery Benefiting Income Investors
This hasn't been the best year for U.S. retailers. But retail sales have undoubtedly been a major contributor to America's post-recession recovery.

Disclaimer & Important Information

WyattResearch.com is owned and published by Wyatt Investment Research. Wyatt Investment Research is neither a registered investment adviser nor a broker/dealer. Readers are advised that this electronic publication is issued solely for information purposes and should not to be construed as an offer to sell or the solicitation of an offer to buy any security.

We encourage you to review our full Email and Disclosure policies.
To view our Email Policy, please
click here. To view our Disclosure Policy, please click here.

If you believe this communication to be a mistake or unsolicited, please e-mail
abuse@bfpnewsletters.com with details regarding your situation, and we will be sure to promptly investigate your situation.

You are subscribed with the following email address: godsentnnodim.investment@blogger.com
To unsubscribe from this newsletter, please visit www.wyattresearch.com/unsub/godsentnnodim.investment@blogger.com

Copyright (c) 2013 Wyatt Investment Research. |
Privacy Policy

Wyatt Investment Research
65 Railroad Street
Richmond, VT 05477. PO Box 790



1 comment: