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Microsoft's $40 billion bet

Time: 15:20 EST/20:20 GMT | News Source: CNN | Posted By: Robert Stein

NEW YORK (CNN/Money) - The numbers at Microsoft are headed in the wrong direction. This is not a fact most investors have focused on, but plenty of the company's executives have. At Microsoft's sprawling Redmond, Wash. complex, the word "slowdown" is being openly discussed, casting a chill over the world's largest software company. Revenue growth has slowed. Margins have narrowed. Until its fiscal 2000, the company had never posted annual operating income gains in the single digits. Now that's happened 2 years in a row.

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