Why Microsoft Will Bounce Back

There has been a lot of talk about Microsoft being behind the curve lately, especially in light of their recent failed attempts to purchase Yahoo!. Fact is, Microsoft is in trouble. They are in the kind of trouble that many big companies have been faced with in the past - stagnation. Stagnation is deadly, especially in the world of high tech. So, is Microsoft doomed to failure? Should we all sell our shares and get out, especially now that Bill Gates is gone?

No.

Microsoft will turn around. Why? Precisely because of all the press and discussion of its errors. Jack Welch, the great CEO of General Electric, said this about change: "When the whole world knows about your problem, the wind is at your back."
The whole world knows about Microsoft's problem, and that is why they will succeed. They will succeed because they are a company filled with smart people and they have everything going for them, except change. Yes, they have lost this round with Google adSense, but so what? If they concentrate on markets they can win in, on positive change, they will succeed. So, buy Microsoft stock today? Maybe, maybe not. But don't count them out. Everyone else is, and that's why Microsoft will succeed.