Microsoft's shares hit a three-year low last week as investors expressed concerns over the company's first quarter earnings as well as the large amount of cash it plans to spend on research and
development in the coming year. Microsoft is undergoing some serious changes to its business model, switching from a software-centric to a Web-based, ad-supported model. Rising competition from
Google, which has now publicly said it will be moving into Microsoft's turf, coupled with the costly uncertainty of shifting focus to its new Live suite of Web-based products and services, have had a
prevailing effect over investors. The company plans to spend a whopping $6.2 billion on research and development this financial year, which it expects to soften profits--but just how seriously depends
on how well Microsoft's Live series plays with consumers and advertisers.
Read the whole story at VNUNet.com »
