Microsoft is just one of those companies whose financials look like a kids sandbox in a neighborhood full of cats. On the surface, everything looks OK, dig a little deeper, and its full of shit. Suffice it to say, I think there is a lot more red ink hiding in the numbers and they are pacing/concealing/staggering those losses to reduce shock value/preserve stock value. I am not going to throw Enron out there as a comparison, but............
Charlie's opinion aside, Microsoft has just made some mind numbingly bad moves in a market that will no longer tolerate incompetence. 15-20 years ago when you were the only OS on the biggest computer platform, you could get away with incompetence. Now it costs you.
Microsoft has many many tons of cash laying around to cover fuckups with, so short term, meh. Long term, strategically, problems are there.
Please stop. I know you tried to soften it by saying "not throwing out Enron" but please stop. Enron had exponential growth due to extreme abuse of revenue recognition. They literally used AA to figure out every loophole in GAAP and abuse the shit out of them, creating subsidiary companies to flow expired assets and other completely immoral acts. This isn't Enron.
Worst comparison ever.