Microsoft Corporation (NASDAQ:MSFT) recently reported strong gains in its first-quarter profit and revenue because of robust sales in its mainstay business of selling personal computer software to businesses, which have increased their technology spending, according to an October 28, 2010 New York Times report .
A look at WANTED Analytics ™ for Microsoft's hiring patterns across the US confirms Microsoft’s promising business outlook. After trailing off its Hiring Demand peak in August 2008 in the midst of the recession, Microsoft has recently increased its online job ad posting activity for different divisions and business units. Over the last 120 days alone, Microsoft has increased its job ad volume by 200% compared to the same period last year. A majority of the positions are in Seattle, of course, but the top five markets also include Washington DC, New York, San Jose and Chicago.
The following chart from WANTED Analytics establishes a relationship between Microsoft’s hiring needs and its weekly stock price. The stock price peaked about 7 months before its hiring needs did – stock markets are usually forward-looking by six or seven months. In December 2007, when the stock price peaked at $36.12, the Hiring Demand also peaked right after 7 months in August 2008 with 3,278 job ads. The same pattern was repeated more recently. The stock price peaked at $31.00 in December 2009, and Microsoft’s Hiring Demand also spiked after 7 months, in August 2010, with 2,805 job ads. The difference between the two stock price peaks, as well as that of the two Hiring Demand peaks is 14% — the same proportionate difference. With expected launches of new smart phone software and pursuits of more profitable corporate business, Microsoft’s stock price is likely to gather steam in the next few months, and likely to be followed by a corresponding spike in Hiring Demand in the latter half of next year.
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