Falls Of Microsoft: How Tech Giant Lost Its Edge in Stock Market?

• The firm, once considered the mac-daddy of technology, has over the years plummeted, How and Why Microsoft has lost its crown? 

Microsoft, the technology giant known for its Windows Operating System and Office Suite, has had a tumultuous journey in the stock market. Despite its success, the company’s failure to adapt to the changing technology landscape innovation has led to a decline in its stock price. 

A Rollercoaster Ride

Microsoft’s stock has had a rollercoaster ride over the past decade. In late 1999, the stock reached an all-time high of around $60 per share. Then, the dot-com bubble burst, and the company’s failure to fully capitalize on the growing mobile and internet markets led to a drastic decline in the stock price, falling to around $20 per share by the end of 2002.

Microsoft’s stock slowly began to recover, but it was only with the release of Windows 7 in 2009 that it began to surge yet again. Windows 7 helped to boost the company’s stock price, which reached a new all-time high of around $40 per share in late 2010. However, the stock has struggled to maintain momentum recently, trading around $254 as of Feb 2023.

The Reasons for Failure

One of the leading causes of Microsoft’s failure in the stock market was its inability to adapt to the changing technology landscape. While the company was once a dominant player in the personal computer market, the rise of mobile devices and the decline of traditional PC sales have hurt Microsoft’s bottom line.

Despite its constant efforts to enter the mobile market with products like the Surface tablet and Windows Phone, no breakthrough was observed that could challenge the traction of its nemesis brands like Apple (iPhone) and Google (Android, Nexus, Pixel).

Another reason for Microsoft’s failure in the stock market is its need for more innovation. Although Microsoft has had some success with products like Windows and Office, its failure to create compelling and disruptive innovations has been costly. 

This unimaginative approach has left their stock price stagnant, creating a lack of faith for many investors. Ultimately, this lack of innovation is one of the main reasons that Microsoft’s stock market has suffered.

Microsoft’s failure in the stock market can also be attributed to its lack of diversification. Microsoft could not protect itself from the rapidly changing technology market due to its reliance on Windows and Office for most of its revenue. As the company attempts to generate new sources of income, it has yet to unlock those potential sources effectively. 

To make matters worse, this leaves Microsoft in a precarious position regarding its growth plans. The only way that Microsoft can ensure its longevity within this constantly shifting environment is by diversifying its portfolio and revamping its strategies to capture these untapped opportunities.

Conclusion

Taking a closer look, Microsoft’s future outlook is uncertain! The tech giant has made numerous attempts to right its course in the stock market due to its inability to evolve with the shifting landscape and lack of creativity and diversification. Recent efforts have been set in motion by the company, but it remains to be seen if they will be enough to win back investor trust and revive its stock price. 

Developing cutting-edge products and adding other revenue streams must become priorities if Microsoft wishes to retain dominance within the tech arena as powerhouses like Apple and Google. Only time will tell what prospective endeavors Microsoft may undertake and whether these endeavors will help bring about a positive transformation in its presence on the stock market.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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