Feeds

Hedge fund invests $2bn in Microsoft, thinks Redmond is undervalued

'Microsoft could be the largest cloud company in the world'

Next gen security for virtualised datacentres

Microsoft's quarterly earnings report last week did little to reassure the markets that the company is on track to regain its former stock valuation, but a $2bn buying spree by a US hedge fund prompted an uptick in its share price on Monday.

At an investor conference Jeffrey Ubben, founder ValueAct Capital Management, said that investors aren't recognizing the long-term value that Microsoft holds, particularly with its strengths in server and back-end systems. His fund specializes in taking stakes in undervalued firms and spinning the shares into profitability.

"It is a dominant software company...and in the long term it will win out," Mr. Ubben said, the Wall Street Journal reports. In three to five years, he said, "Microsoft could be the largest cloud company in the world."

Microsoft's share price peaked at just over $50 a share at the height of the tech-share bubble at the turn of the century before falling down to around the $30 mark – a price it has maintained but not improved upon under Steve Ballmer's time as CEO. Ubben's comments, and his firm's investment, have boosted Microsoft's stock price by nearly 5 per cent.

Microsoft's management team said they "welcome the perspectives of shareholders," a Microsoft spokeswoman said in a statement. "We are committed to enhancing value for all shareholders, and will continue to take actions that we believe will enable us to achieve this objective." ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?