Most of the technology giants have announced their quarterly earnings and investors are now weighing their options for the upcoming quarter. Discussing some important technology stocks in a program, Bloomberg’s Anand Srinivasan shed some light on Microsoft Corporation (NASDAQ:MSFT) and Intel Corporation (NASDAQ:INTC) stocks. Speaking about Microsoft Corporation (NASDAQ:MSFT), Srinivasan said that Satya Nadella, the new CEO of Microsoft has taken a very bold step by cutting down 18,000 jobs. He said that Microsoft is going to face some volatility after this announcement, but things will get stable in the coming months. Srinivasan said that most of the job cuts are from the acquired areas by Microsoft Corporation (NASDAQ:MSFT), not from the original company.
Srinivasan was positive about Intel Corporation (NASDAQ:INTC) stock. He thinks that Intel Corporation (NASDAQ:INTC) performed really well in the recent weeks and if this trend continues, investors can really expect things from the stock. Intel shipped five million tablet processors in the first quarter and in the second quarter the company provided processors for 10 million tablets.
Srinivasan also said that technology companies have a bad track record of buying back their own stock and most tech companies have huge balance sheets, but they don’t know what to do with it.
“Technology companies have historically been bad towards the capital in the opposite way, they have too much cash on their balance sheet and not enough to know what to do with, right, so a lot of these companies are issuing a lot of dividends, they have grown up, they are buying back a lot of stock, now, the one thing we will say is, we analyze a lot of the returns on buy backs, and historically, tech companies have not done a good job of buying back their own stock,” said Srinivasan.
Srinivasan thinks that Intel Corporation (NASDAQ:INTC) is going up because of the comeback of the PC industry. He said that he wants to see a continuity in the Intel Corporation (NASDAQ:INTC) stock trends because this will make it a favorable stock in the market.