Nadella’s elevation adds little to Microsoft scrip
New York: Satya Nadella’s elevation as Microsoft boss seems to have elicited a mild reaction from investors with the software giant’s share price remaining mostly flat in the first four days of his reign.
Shares of Microsoft, whose market valuation is worth over USD 300 billion, gained less than one per cent since Nadella was appointed as CEO on February 4.
On the day of appointment, the scrip closed at USD 36.35. Over the next three days, the price movement was marginal and ended at USD 36.56 on February 7.
The scrip slipped to USD 35.82 on February 5, before gaining ground to close at USD 36.18 the next day.
On February 7, Microsoft’s market valuation on the Nasdaq was a little over USD 303 billion.
Speculation has been rife about next Microsoft CEO since Steve Ballmer announced on August 23, 2013 that he would retire.
Since that day till Nadella’s appointment on February 4, Microsoft scrip gained nearly five per cent. It had closed at USD 34.75 on August 23, 2013.
Associated with Microsoft for 22 years, India-born Nadella’s elevation also comes at a time when the company is facing challenges from the likes of Apple and Google. Prior to the new role, he was Executive Vice President of Microsoft’s Cloud and Enterprise group.
His major challenge would be to make Microsoft a force to reckon with in the fast evolving cloud and mobile platforms.
Even though Nadella’s appointment has put to rest uncertainties over the succession plan post Steve Ballmer reign, there were also speculations as well as expectations in some quarters that an outsider could take over the reins of Microsoft.
Nadella is only the third CEO in the nearly four-decade old history of Microsoft.
After being appointed as CEO, Nadella had said the opportunity ahead for Microsoft is vast, but to seize it, “we must focus clearly, move faster and continue to transform”.
“A big part of my job is to accelerate our ability to bring innovative products to our customers more quickly,” he said.
Microsoft founder and now technology advisor Bill Gates, on February 4, had said that Nadella is a proven leader with hard-core engineering skills, business vision and the ability to bring people together.
“His vision for how technology will be used and experienced around the world is exactly what Microsoft needs as the company enters its next chapter of expanded product innovation and growth,” Gates had said.