Microsoft hasn't had the best reputation as of late. It's generally viewed as outdated and clunky compared to hipper competitors like Apple. But, Microsoft is staging a comeback thanks to the leadership and vision of CEO Satya Nadella.
Since Nadella took the reins, Microsoft shares are up over 30%, 10 points ahead of the S&P. In comparison, Microsoft’s stock dropped nearly 12% during [former CEO Steve] Ballmer’s tenure and underperformed the market.
Since he took over, Nadella has invigorated Microsoft by giving the company clear direction. That has resulted in the death of the antiquated Internet Explorer browser and resulted in the creation of highly-anticipated products like Windows 10 and Microsoft Edge. Nadella also directed the company to focus on cloud-based services, and that's paying off big time.
Companies like Apple and Google have had lots of success with their cloud services. Using Google Drive, you can store files and create all sorts of documents from any Internet browser. Now, Microsoft is a big cloud player, too.
Nadella has Microsoft focusing on mobile products and cloud-first computing. Microsoft now offers a range of cloud-based services like OneDrive and Microsoft Office Online.
On the cloud side, Microsoft’s business has been flourishing. Profits from the cloud—that is, software and services available via the Internet—more than doubled in the past quarter, and revenue has increased to $6.3 billion.