The stock market is a tricky beast. While the daily movements of stock prices often defy conventional logic, the larger trends are generally indicative of the confidence the markets have in a company. With that in mind, Microsoft shares hit a 52-week high today, hitting $45.93 at the close, suggesting that Wall Street appears to approve of new CEO Satya Nadella’s direction for the company.
Today’s mark is more than a 52-week high, however: It’s the highest price for Microsoft stock since 1999, when it hit $58.71 per share. While it’s hard to pinpoint an exact reason why the company’s stock is doing so well right now, it could be due to several factors. The least likely (but still slightly plausible) reason is that Wall Street loves the new Lumias that were announced at IFA this week. What is more plausible is that rumors of the upcoming announcement of the next version of Windows at the end of this month could move the needle.
Wall Street (and frankly just about everyone) knows that Windows 8 isn’t selling well, and with Windows Threshold, Microsoft can reset the sales dial to see if a new version of its flagship operating system will resonate better with of its customers.
Whatever the reason, and the story is probably very complex, Microsoft’s stock is doing pretty well right now and has shown no indication that it’s finished climbing.
[Update] Incorrect year was used in the post, updated to reflect the correct period.
Source: Yahoo Finance
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