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April 24, 2008

Microsoft: Quick Take -- Needs YHOO More Than Ever

Microsoft's just-released numbers look weak to me. Revenue was a little lighter than expected, while EPS was just okay. Guidance is decent on revenues, but no hell on earnings. Looks like Windows and Office were both somewhat sucky in the quarter.

So what does this mean for Microsoft? It means the company was whistling past the online graveyard when implying it might abandon its Yahoo bid. Sure, it might, but that would be even more unhinged than usual from this oft-unhinged company. The market was looking for a blockbuster quarter from Microsoft, and it didn't get it, so Microsoft needs juice (read:Yahoo) more than ever.

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