Why is Microsoft Corporation Surging Today?
The Dow Jones Industrial Average has surged 0.8% higher in midafternoon trading Monday. But that's nothing next to Microsoft , which posted the strongest gain on the blue-chip index today.
Microsoft shares soared 2.7% as of 2 p.m. EDT as freshly appointed CEO Satya Nadella really started taking charge of the company.
Nadella is shaking things up in Redmond. In an internal email unearthed by Bloomberg this morning, Nadella appointed new leaders for three of Microsoft's most important divisions.
When the acquisition of Nokia closes, probably by the end or April, there's a reunion in the cards. Former Nokia CEO Stephen Elop will take charge of Microsoft's hardware division, including Nokia's handset business.
However, Elop won't take over the company's Xbox operation. Both the hardware and software sides of Xbox will run under Phil Spencer, who has commanded Microsoft's video game development since bootstrapping Microsoft Studios in 2007.
Rounding out the trio of executive upgrades, Scott Guthrie takes the reins of Redmond's cloud and enterprise group. Once again, Nadella picked a guy with plenty of relevant experience: Guthrie is spearheading the Windows Azure cloud computing platform and has been deeply involved in developer operations since creating the ASP.NET programming language way back in 2002.
Investors like this quiet management makeover for at least two important reasons:
Nadella is appointing his own lieutenants. In particular, Nadella has worked closely with Guthrie in the cloud computing segment for several years. Ex-CEO Steve Ballmer's spirit might not linger in Redmond after all.
These appointments all make sense. Nadella is putting all the right experience on top of each division. If you feared that the new CEO's makeover would change things just to prove that he had that power, it's time to breathe a sigh of relief.
Nadella's promotions are taking uncertainty out of owning Microsoft shares, and that's always a good thing. If he keeps this up, Microsoft might have a shot at staying relevant in this crazy, ever-changing market.
Are you ready for this $14.4 trillion revolution?
Microsoft might stay healthy for the long run with all of this totally appropriate leadership in place -- but let's face it, every investor wants to get in on revolutionary ideas before they hit it big. Like buying PC-maker Dell in the late 1980s, before the consumer computing boom. The problem is, most investors don't understand the key to investing in hyper-growth markets. The real trick is to find a small-cap "pure-play" and then watch as it grows in EXPLOSIVE lockstep with its industry. Our expert team of equity analysts has identified one stock that's poised to produce rocket-ship returns with the next $14.4 TRILLION industry. Click here to get the full story in this eye-opening report.
The article Why is Microsoft Corporation Surging Today? originally appeared on Fool.com.Anders Bylund has no position in any stocks mentioned. The Motley Fool owns shares of Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.