Here are my thoughts on the Microsoft (MSFT) investment in Facebook. 20 years ago the company’s operating systems burst on the scene and helped to launch the desktop computing revolution. In the process it became a virtual monopoly. MSFT was the hunted and the rest of technology was the hunters. Now 20 years later, Google (GOOG) and Apple (AAPL) have emerged to be the leading edge of technology as MSFT is still trapped in its windows mindset. MSFT is now the hunter and no longer the hunted. The Zune is a joke. XBOX is an industry laggard. Any attempt to cut in on iPhone by MSFT will likely be a failure. The leadership at MSFT is rusty at best. Bill Gates is too focused on social issues and playing cards with Warren Buffett. The small investment in Facebook will not generate any meaningful benefit to MSFT. In the end, buying MSFT based on this news is a giant mistake.
At the time of this Blog entry Scott Rothbort, his family and or clients of LakeView Asset Management, LLC were long shares of AAPL and GOOG --- although positions can change at any time.