At Ballmer’s Microsoft, Stock Price Defies Sales Growth

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http://www.bloomberg.com/infographics/2013-10-24/at-ballmers-microsoft-stock-price-defies-sales-growth.html

Microsoft’s sales did nothing but grow during Steve Ballmer’s 13-year tenure as CEO , as depicted in this Bloomberg infographic, although that trend was not reflected in the company’s sluggish stock price. As an example, total sales grew 294 percent to almost $78 billion in that time while stock price fell 37 percent to $33.76 per share. On Thursday, after Microsoft announced better-than-expected first quarter earnings, Microsoft shares surged more than 6 percent in after-hours trading.

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PeterStrohm

Wall street knows Microsoft’s practice of carrying earnings from one accounting period into another, known as “managing earnings”. This practice smoothes reported revenue streams, increases share value, and misleads employees and shareholders.

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