(Subscribers to ZYX Buy Change Alert have been provided a precise zone where to buy and how much to buy.)

On Tuesday, Microsoft MSFT announced that it is buying Nokia NOK ’s device business and also licensing certain intellectual property from Nokia.  There has been much negative commentary. For example Morgan Stanley MS downgraded Microsoft, and investors voted with their money by selling shares, with Microsoft stock trading nearly 7% lower than it  did before on Friday before the deal was announced.

It’s hard to blame investors.   In 2007, Microsoft spent $6.3 billion on online advertising outfit aQuantive, but last year wrote down the value of the acquisition by $6.2 billion.   Despite the reflexive distaste of the market and the foibles of the recent past, I believe that there is long-term value in this transaction.

Here are seven reasons why Microsoft buying Nokia’s device business is a brilliant move.

Transform Or Perish

Microsoft is facing a stark choice between major transformation or perishing as a growth entity in its current form.  Microsoft has chosen to go the route of transformation.  The other route, not chosen, would have been breaking up the company between consumer and enterprise segments and then milking the cash cows of existing software products.

Microsoft has traditionally been a software company, but a number of major trends have made its traditional model obsolete.  Such trends include rapid proliferation of mobile devices, cloud, software as a service, decline of the PC, and tighter integration between hardware and software on the lines of the Apple AAPL  model.

Microsoft has embarked on a difficult major transformation to become a devices and services company.  To date, Microsoft’s device business has been limited to Xbox and Surface tablets, quite small in comparison to the total scope of the company…Read more at Forbes

Subscribe to 'Generate Wealth'

Free Forever

More To Explore

30 Day Free Trial

Cancel within 30 days and you owe nothing

When you take a FREE 30 day trial, you get access to powerful techniques used by billionaires and hedge funds to grow richer. You can continue to use these powerful techniques to grow richer even if you cancel your subscription. You come out ahead by subscribing no matter how you look at it.

A fortune is to be made from AI stocks.
Get the list of 18 AI stocks to grab your share of the profits — no cost to you.

A fortune is to be made from AI stocks.

Get the list of 18 AI stocks to grab your share of the profits.

AI is a $1 Trillion Market

Making A Fortune
In Artificial Intelligence

Golden Age of Artificial Intelligence