Why Shareholders Want Gates Out

The big Microsoft shareholders who are happy about CEO's Steve Ballmer imminent exit – and now want his mentor, company co-founder and chairman Bill Gates to follow him out the door -- seek one thing: improved capital allocation.

"If both Gates and Ballmer are out, and better capital allocators are in, Microsoft's stock will hit $40 within the next several months," predicts Dan Ferris, investment analyst at Stansberry & Associates Investment Research. The dissatisfied shareholders are most probably upset that Gates would likely stay the course that he and Ballmer have established by pushing for a Ballmer clone to replace his college buddy. The shareholders who want Gates to follow Ballmer out the door very likely view poor capital allocation as one of Microsoft's primary problems.