In June I wrote a blog entry on how Microsoft has become a zombie corporation. Well earnings was released and as Pete Najarian said, “how is it that Wallstreet got it so wrong.”

Well Pete if your network CNBC was not so busy bashing bloggers as know nothings maybe you might be able to glean some information that might have been useful. As I said in my 2009 predictions “analysts will be a joke”, analysts missed AGAIN…

So let’s go back and focus on what happened. The real problem with Microsoft is that the Windows franchise has become a liability for Microsoft. Vista was a dud and as a result people are not willing to upgrade. They are looking at other options like Apple.

Microsoft missed the netbook market and gave netbooks Windows XP, meaning that they get lower margins. Microsoft did not innovate on the platform that they should have been all over with. They essentially are giving the market to the competitors like Google.

Microsoft missed the mobile market and people are essentially ignoring them. Think about it. Apple is on a tear, and only the strong will survive, which in my opinion will be RIMM, Nokia, and Google. The rest will fall off or be a minority player.

Microsoft missed the search market and their answer with Bing is crazy!

As a result of these problems Microsoft is missing real opportunities and they are missing a focus. This is the death blow to Microsoft. IBM with Lou Gerstner knew how to focus and look at IBM now.

I sold all of my shares in Microsoft at a profit and I am happy about it! Maybe those shareholders remaining should start demanding that management start being held responsible!