By rethinking its acquisition strategy, the computer software and electronics company can be an innovator in growing sectors, such as cloud services, smart phones and teleconferencing

Microsoft’s stock has been stagnant as investors lose faith in the company’s plans for its future. After peaking at just under $60 a share in early 2000, Microsoft’s stock fell to about $22 later that year and has traded mostly between $25 and $40 a share in the 14 years since then. While revenue and earnings per share have more than tripled since then, the stock price has not followed suit. The question of why can be answered fairly simply: investors have lost faith in Microsoft’s future ability to control its core markets.  What Microsoft could do can be answered fairly simply: Take a page out of Facebook’s apparent strategy and buy best of breed next generation companies. Continue reading →