Microsoft Corp.MSFT recently appointed Brad Smith, an internal executive, as the president and chief legal officer. He will continue to report to the company's CEO, Satya Nadella.
The 56-year old Smith joined Microsoft in 1993 and was appointed the general counsel in 2002. In 2011, he became an executive vice president.
Nadella stated that Smith will work on critical issues like privacy, security and accessibility. He will also lead several new Microsoft initiatives, further adding to the company's long-term success and growth.
Ever since Nadella took over the reins, Microsoft's stock price has gained more than 25%. He has been focusing on making the world's largest software maker more agile and facilitating better concentration on emerging areas like mobile, wearables, cloud-computing and productivity software. Also, Nadella has been rightsizing the company by eliminating some layers of management and aligning operations with the new growth plans to make the decision-making process more efficient.
However, the persistent decline in worldwide PC sales has been impacting Microsoft's Windows segment - an integral part of its business. Nadella has been striving to expand the business and the Windows 10 launch is likely to encourage customers to own computers, tablets and smartphones powered with Windows OS, according to the company.
We expect the new president, with his in-depth knowledge of the company's strengths and weaknesses, to take the business to newer highs.
Currently, Microsoft has a Zacks Rank #3 (Hold). Some stocks in the same space that have been performing well are Dassault Systemes SA DASTY , Manhattan Associates, Inc. MANH and MicroStrategy Inc. MSTR . All these stock sport a Zacks Rank #1 (Strong Buy).