Why 2017 Might Be a Difficult Year for Microsoft

Microsoft has become Wall Street’s darling again after a few rough years in the late Steve Ballmer era. But the company still has a lot riding on executing well next year.

First and foremost, Microsoft, under Satya Nadella--who stepped in as chief executive, replacing Ballmer about three years ago--must prove it can do big acquisitions well. Microsoft’s record there is checkered following misfires with Nokia and aQuantive--both purchases resulting in huge write-offs. That means all eyes...

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