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 Microsoft Ahead of Windows 8

NEW YORK ( TheStreet) -- Wall Street has an insatiable appetite for growth and no other sector has been able to satisfy such cravings better than technology. So it is only right that techs have long enjoyed above-average, if not shocking, valuations.

However, high fliers come with high expectations to perform, as justification for these valuations. Some such as Apple (AAPL - Get Report) and Amazon (AMZN) have been able to do this better than others, while names like Cisco (CSCO) continue to find it difficult to get past the " prove it to us" attitude of Wall Street.

Booting Up Windows 8

What is clear in these situations is that Wall Street is quick to punish companies unable to meet such inflated expectations -- regardless of how ridiculous they might have been from the start. And remarkably there are instances where if expectations were merely met, companies are still chastised for not having blown away the numbers.

So what does one do as an investor in these companies? Do you follow the herd and look beyond what might actually have been a good performance or do you intelligently stick to your guns and appreciate that sometimes the market behaves irrationally? Fairly or unfairly, this is where software giant Microsoft (MSFT - Get Report) has found itself. However, there is reason to suspect that Windows 8 is about to change its fortunes.

Part of the reason investors distrust that Microsoft can get this launch right is that Wall Street does not particularly care for the company's management -- and this has been evident for quite some time.

Growth is the primary driver of the stock market and has not been something that Microsoft has produced in sufficient quantities. For management, this provides an opportunity to make up for past launch debacles and exorcise memories of Windows Vista. It could serve to restore some of the respect and trust that the company has lost from investors over the past decade.

What should excite investors is the fact that Microsoft is now doing its part to secure its brand as well as its future. Though it continues to maneuver (without complaint) in the shadows of Apple and Google (GOOG), the best way to assess Microsoft and its value is by using on its own performance.
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 $92.84 -0.83%
MSFT $49.96 0.18%
FB $117.81 -0.21%
GOOG $697.79 0.30%
TSLA $213.32 -4.20%


Chart of I:DJI
DOW 17,648.76 -2.50 -0.01%
S&P 500 2,054.61 +3.49 0.17%
NASDAQ 4,732.5120 +6.8730 0.15%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs