This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Buy Intel, Microsoft as They Prepare Assault on Apple

NEW YORK ( TheStreet) -- Intel (INTC - Get Report) and Microsoft (MSFT - Get Report) have been the sleeping dogs of the stock market. In a world where we measure everybody else against Apple (AAPL - Get Report), recent results are telling.

In 2011, AAPL returned over 25%. INTC increased by just over 15% and MSFT dropped by more than 5%. While AAPL still reigns supreme, the tide has begun to turn. As of Monday's close, AAPL is up 42% YTD, compared to 20% and 16% pops for MSFT and INTC, respectively.

Over the last month, both MSFT and INTC have outperformed AAPL. AAPL has struggled to retest the highs it set prior to earnings in early April. While this does not spell impending doom for Apple, consider it a harbinger of things to come over the long term.

Intel and Microsoft are -- finally -- doing all the right things. If anyone was ever going to wake up and provide Apple with legitimate competition, it was these two sleeping dogs. And their push should help weaker companies such as a whole slew of PC makers, Nokia (NOK - Get Report) and Barnes & Noble (BKS - Get Report), not only stay alive, but turn things around.

To drive this point home, consider hockey's sleeping dog, and the results of him getting some ice time. If you follow the NHL Playoffs at all, you likely know that Alex Ovechkin scored the game winner Monday night in Washington's victory over the New York Rangers.

For a whole host of reasons, Ovechkin is not getting much ice time. In fact, in last night's game, he only played 13 minutes, 36 seconds. Capitals coach Dale Hunter has a whole host of good reasons for limiting his use of Ovechkin and fellow high-flyer Alexander Semin.

Those explanations aside, Hunter turned the Russian superstar into a sleeping dog. And you know what happens when you wake sleeping dogs -- they make the most of every single shift and, more often than not, do serious damage.

Intel and Microsoft are ready for a little ice time. Let's think about the billions Intel and Microsoft have spent over the last year:

  • Microsoft buys Skype.
  • Intel invests $300 million to push ultrabooks.
  • Intel invests in automotive technology.
  • Intel looks to move into the content game.
  • Microsoft invests billions in Nokia as well as Barnes and Noble's eBook/Reader business.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
BKS $11.75 0.00%
INTC $30.28 0.00%
MSFT $49.87 0.00%
NOK $5.87 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs