Nasdaq: MSFT
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Buy, Sell or Hold: Is Microsoft Stock About to Break Out of Its 10-Year Slumber?
Microsoft Corp. (NASDAQ: MSFT) is the world's largest software company. It's also the world's largest afterthought for most investors.
"It's an ancient relic," they say, "Apple and Google are the only games in town."
Or there is always this complaint: "Microsoft has no attractive products and there is no growth"...blah, blah, blah.
This ongoing apathy is one of the reasons why Microsoft stock has been stuck in the doldrums for years.
But if you are willing to look a little deeper, you'll discover this sleeping giant is coming out of its long slumber - and it's hungry.
Don't get me wrong, I'm not going to try and convince you that Microsoft is ready to change its stripes and become a full-scale growth company. Microsoft is what it is - the seller of the market-dominant PC operating system, Windows, and the seller of the market-dominant workplace productivity software, Office.
However, it does have the potential to become a major competitor in future growth markets like smartphones, tablets and enterprise solutions.
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The 5 Worst CEOs of 2012 and Why They Should Be Fired
Among others, Mark Zuckerberg of Facebook Inc. (Nasdaq: FB), Brian Dunn of Best Buy Co. Inc. (NYSE: BBY) and Andrew Mason of Groupon Inc. (Nasdaq: GRPN) all had a rough year.
Money Morning's experts picked through the list of disappointing names and came up with the five worst CEOs of 2012.
Here are the finalists, along with our experts' reasons why these weak performers should be given the axe in 2013:
- Ben Bernanke, Chairman of the U.S. Federal Reserve - Picked by Chief Investment Strategist Keith Fitz-Gerald:
Bernanke is the CEO of the biggest private institution on the planet, the Fed.
Despite overwhelming evidence that the theories and methods he is using have not worked, are not working and have never worked since the dawn of recorded history, he continues to plow ahead with more of the same failed monetary and fiscal policy that got us into this mess.
In the process, he risks unspeakable damage to the United States and to the global financial system while only kicking the proverbial can down the road.
- Ben Bernanke, Chairman of the U.S. Federal Reserve - Picked by Chief Investment Strategist Keith Fitz-Gerald:
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Why the Fate of Microsoft Stock Hinges on Windows 8
Any hope of jolting Microsoft stock out of years of stagnation lies with the success of its latest attempts to capture a slice of mobile computing.
Microsoft Corp. (Nasdaq: MSFT) is only a bit player in mobile, currently dominated by devices running Apple Inc.'s (Nasdaq: AAPL) iOS and Google Inc.'s (Nasdaq: GOOG) Android. That's why the company now has a new mobile strategy, with the focal point being Windows 8, the latest version of Microsoft's dominant computer operating system.
Windows 8 is optimized for the mobile devices such as tablets and smartphones that have stolen the thunder from traditional PCs, a market Microsoft long dominated.
Microsoft has also ventured into mobile hardware with its new Surface tablet.
Now Microsoft is betting that the Surface tablet will turn heads and that Windows 8 will put it back in the mobile OS game by luring hardware makers away from Android.
"I don't control the macro-environment, but there's a huge opportunity in the explosion of devices," Microsoft Chief Financial Officer Peter Klein told Reuters. "There's demand for compelling devices and a connected set of cloud experiences. That's what Windows 8 is all about."
The Redmond, WA-based company must succeed in mobile to secure a new source of growth capable of moving Microsoft stock out of the doldrums where it has languished for more than a decade. The current 10-year return for MSFT is -6.39% -- yes, negative. Rolling back to November 2001 puts the return on Microsoft stock at -15.75%.
Owners of Microsoft stock can only cross their fingers and hope the bet pays off.
How Mobile Success Could Help Microsoft Stock
Microsoft had little choice but to shift its attention to mobile computing. That's where the money is in tech today.
Apple's profits have soared from about $2 billion in FY 2006 to $41.7 billion in FY 2012, almost entirely on the strength of the iPhone and iPad.
More recently, Korean-based Samsung Electronics (PINK: SSNLF) has emerged as the dominant Android hardware maker, with its profits rocketing 91% in the September quarter on strong sales of its Galaxy series of smartphones.
Sales growth in mobile devices has soared over the past few years. Research firm Gartner expects combined global sales of tablets and smartphones to reach 821 million units this year and rise 46% to pass the 1.2 billion mark next year - triple that of global PC sales.
So far Microsoft hasn't been able to grab much of this market, with its Windows operating systems on just 2.4% of smartphones, and about 4% of tablets.
But these projections by research firm IDC see that changing with Windows 8...
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Why Sinofsky Left Microsoft (Nasdaq: MSFT)
It hasn't even been three weeks since the hugely hyped release of Windows 8, and Windows division president Steven Sinofsky has left Microsoft Corp. (Nasdaq: MSFT).
The abrupt departure has many questioning the success of Windows 8, Sinofsky's relationship with Microsoft CEO Steve Ballmer, and the evolution of the software giant.
"It is a little surprising to see a departure of someone at this level in charge of so many products with such immediacy, with no transition period. Microsoft is going to enter another period of management transition," Michael Gartenberg, an analyst at Gartner Inc. told Bloomberg News.
During his tenure at Microsoft, Sinofsky won accolades for leading intricate software projects and making sure they were delivered on time.
It had been widely speculated that Sinofsky, a 23-year Microsoft veteran, would take the reins when Ballmer stepped down.
But according to insiders, Sinofsky and Ballmer didn't always see eye-to-eye.
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Future Microsoft Profits Rely on Critical Product Launches this Fall
There is a first time for everything, as we learned from the dro p in Microsoft profits the company reported yesterday (Thursday) after market close.
Microsoft Corp. (Nasdaq: MSFT) posted its first quarterly loss as a public company - breaking a 26-year record.
Now the company hopes its crop of new products launching this fall will not only boost profits, but edge out the strengthening competition.
"Microsoft is a very strong enterprise player," Tony Ursillo, an analyst at Loomis Sayles & Co. told Bloomberg News following the report. "There was lots of evidence in tonight's report that they are a force to be reckoned with in the enterprise."
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Stock Market Today: Who's Up, Who's Down
Many companies are making headlines in the stock market today as markets are up on hopes of more monetary easing from the U.S. Federal Reserve as it concludes its two-day policy meeting tomorrow.
Investors might be having a delayed reaction to Sunday's Greek elections as yesterday's trading volume was much lower than average, and not much movement occurred.
The markets are also responding well to the number of housing permits filed in May which was at its highest level since September 2008. Permits were reported at a seasonally-adjusted annual rate of 780,000, easily exceeding forecasts of 725,000.
For now investors wait in anticipation for the Fed to make a move, but if none is taken expect a slight downturn in the markets tomorrow afternoon.
In the meantime, here are five stocks to follow in today's trading:
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Is Microsoft (Nasdaq: MSFT) About to Get Left in the Dust?
Boy, Microsoft should have paid more attention to all those bright young hackers. A lot more.
Back in November 2010, when Microsoft Corp. (NASDAQ:MSFT) unveiled its Kinect product to the public.
Kinect is a motion-sensing input device that responds to full body movements - no remote required - as well as gestures and vocal commands.
It made a great add-on to the firm's popular Xbox 360 game unit. Indeed, it turned the gaming world upside down two years ago, immediately expanding the appeal of gaming to dancers, athletes, and even the elderly. (Kinect is a verifiable nursing home hit.)
Yet it soon became clear that it was to become much, much more than that.
The motion-sensing technology behind Kinect is breakthrough high tech. I predict it will have hundreds of applications that could be worth billions to investors.
Just imagine...
Musicians could put on live concerts with a virtual "band" backing them up. Kids could learn to mimic the exact movements of their favorite sports stars.
Online shoppers could use a personal avatar that lets them virtually "try on" clothes before buying them. Stroke victims could receive physical therapy through their home PCs or their smart TVs.
With the gesture controls, surgeons could even access patient files, send alerts to other doctors, even pull down facts from the Web if needed - all without leaving the confines of a sterile environment.
As I see it, motion sensors will change the future of gaming, architecture, design, medicine, and much more...
No wonder hackers jumped on board in droves.
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Microsoft Kinect (NASDAQ: MSFT) is Virtual Goldmine
Not long ago, the future of Microsoft Corp. (NASDAQ: MSFT) was slipping through its grasp.
Then it introduced Kinect.
Today, the tech giant is using Kinect to win big on a breakthrough that will literally touch millions of lives.
It is one of the reasons why Microsoft's stock has gained more than 20% this year.
What is Kinect?
You may recognize it as the best-selling add-on to the Xbox 360 video game. But it's much more than that.
It represents a revolution in how we will communicate with our computers, our TVs, and our smartphones.
For Microsoft, Kinect is literally a game changer. They lead the world in the technology behind it and it promises to be big.
But not just for Microsoft...not by a long shot.
The Promise Behind Microsoft Kinect
The magic behind Kinect is that it responds to body gestures.
And while Kinect did debut to rave reviews, Microsoft executives really didn't understand how Kinect could change the world -- and rack up new sales.
But since its introduction in 2010, hackers have found dozens of very cool uses for Kinect-- none of which did much for Microsoft's bottom line.
This got the software giant to thinking that maybe they were sitting on a potential gold mine.
That's why Microsoft is now tapping the genius of young entrepreneurs to better monetize the technology behind Kinect.
You know, the type of guys who live and breathe cutting-edge high tech.
In fact, Microsoft recently picked 11 startups to work at its Kinect development offices in suburban Seattle. It's a savvy move.
After all, these guys get out of bed every day looking to create the Next Big Thing.
Already, the program shows great promise. Here are some of the slick high-tech ideas these young turks are already tackling:
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Play Defense With These Three Stocks
In a volatile market, with talk of a pullback, investors are hunting for stocks to keep them happy — and Money Morning Contributing Editor Shah Gilani knows where to look. Gilani revisits FoxBusiness' "Varney & Co." program to share his latest hot stock and sector picks, with a special look at Microsoft Corp. (Nasdaq: MSFT). [...]
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After a Decade of Miscues, Can Microsoft Corp. (Nasdaq: MSFT) Hook Up With the Mobile Revolution?
There are monopolies.
And then there's Microsoft Corp. (Nasdaq: MSFT).
With its Windows operating system installed on virtually all of the world's PCs - the market share peaked at about 95% - Microsoft became synonymous with the personal computer revolution.
And it didn't stop there. After locking up the operating-system market, Microsoft did nearly the same thing in the applications market with its Office suite of productivity software.
