It has been a very eventful week for technology companies. There
have been some significant developments related to prominent tech
giants like Microsoft (
) and Zynga (
). Here are some updates which could impact their stock in the near
Microsoft is set to announce its quarterly earnings for Q2 FY12
on January 19. We expect a slowdown in Windows sales, and steady
growth in Xbox sales, thanks to a jump in sales during the
holidays. Microsoft's stock price has risen nearly 7% this week, in
anticipation of good results.
There have also rumors that Microsoft may be planning to buy
Nokia's smartphone division before CES. There has also been some
speculation that Microsoft will launch the next version of the Xbox
gaming console - the Xbox 720 - at CES 2012.
Coming to Windows Phone, the Windows Phone Marketplace now
offers more than 50,000 apps to customers. While it's still much
lower than Apple's App Store or Google's Android Market, it's a
significant milestone. We also expect Microsoft to launch new
LTE-enabled Windows Phone by Samsung, Nokia and HTC at CES. We also
expect the launch of multiple new Ultrabooks by various notebook
manufacturers, which should help Windows increase its market share
marginally, ahead of the Windows 8 launch in mid-2012.
Check out our complete analysis of Microsoft
The other big mover in technology this week has Zynga. Its stock
has dipped around 5% this week despite a couple of big launches.
Currently, it stands more than 10% below its IPO price of $10.
Zynga's CastleVille has become the second most popular game on
Facebook after CityVille, and now has around 37 million monthly
active users. However, its growth curve has tapered off and its
user base may start declining going forward. Zynga needs to
continue churning out new hits to maintain its user and revenue
growth rate. This week, it launched two new games - Scramble with
Friends on iOS, and Hidden Chronicles on Facebook.
Zynga may also have a very lucrative opportunity to generate
additional revenue in the coming years. The Justice Department
recently passed a law that would allow online gambling in some
states in the U.S. If Zynga enables actual gambling in its flagship
game - Zynga Texas HoldEm Poker - by allowing users to play using
real money, it could generate a significant amount of revenue from
Check out our complete analysis of Zynga
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