David Einhorn, who is an influential hedge fund manager, believes that Microsoft is a strong buy but needs to fire CEO Steve Ballmer and let someone new take charge. Ballmer is apparently “stuck in the past” and is responsible for Microsoft losing potential revenue.
As Reuters reports, David Einhorn of Greenlight Capital believes that Microsoft CEO Steve Ballmer needs to step down and discontinue his “Charlie Brown style of management” and to “give someone else a chance.” Such harsh words for the man who succeeded co-founder Bill Gates in 2000.
Apparently, Ballmer was “stuck in the past” with his actions as CEO of Microsoft and “his continued presence is the biggest overhang on Microsoft stock.”
Despite Ballmer’s presence as CEO, Einhorn believes that Microsoft is still a good bargain and that the company has been “much stronger” than the average company in the S&P 500.
Just yesterday, Microsoft CEO Steve Ballmer openly discussed the next version of Windows and officially referred to it as “Windows 8” and that it would launch in 2012. Afterwards, Microsoft issued a statement retracting Ballmer’s words and calling them a “misstatement.” Ironically, the CEO’s statements were being recalled by a mere spokesperson. Not the first time Ballmer let juicy details slip out.
Back in March, we learned that Steve Ballmer’s approval rating within the company had dropped to just 40%.
How do you guys feel about Einhorn’s remarks? Are Ballmer’s days as Microsoft CEO numbered?Further reading: Microsoft, Steve Ballmer