This Day On The Street
Continue to site
ADVERTISEMENT
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 Before it Stuns Apple and Google

NEW YORK ( TheStreet) -- Microsoft (MSFT - Get Report) released its preview of the new Windows 8 operating system last week.

Even if you do not download it, pay attention to the coverage. Windows 8 could change the game in several areas.

Despite Apple's (AAPL - Get Report) social cachet, Microsoft still enjoys a commanding lead, as Windows remains the dominant operating system on desktops and laptops. And it seems the company has finally decided to join the cross-platform world. This could spell trouble or, at the very least, give Apple and Google (GOOG - Get Report) a formidable competitor in the mobile space.

As Nick Bilton explained over the weekend in The New York Times, while Apple and Google own the mobile space, Microsoft actually has a commanding lead in another crucial area:

Microsoft has something Apple and Google must envy. It has sold 67 million Xbox 360 video game consoles and has more than 40 million Xbox Live members. According to Frank Shaw, Microsoft's vice president for corporate communications, video consumption has grown by 140% each year on the Xbox since 2008.

Apple and Google have the name as innovators, but, clearly, Microsoft still knows how to play the game. Xbox did not emerge as a full-fledged streaming service by accident. And you cannot blame happenstance for what's about to happen: The combination of Windows 8 and Xbox will connect your mobile devices -- smartphones and tablets -- to not only your PC, but, maybe more importantly, your television screen.

Relative to Xbox, Apple TV and Google TV are abject failures. There's an obvious reason: Gaming leads the way on Xbox. You fire up your Xbox to play Tiger Woods PGA Tour and you realize, whoa, this thing does everything any other streamer can do and more. When you stop and think about it, it's really the most brilliant innovation that investors, swept up by Apple euphoria, largely ignore.

Well-positioned to win the battle for the living room -- or at least continue to establish itself as the leader -- it will be interesting to see what Microsoft does from a mobile standpoint. While most talk has centered on smartphones, particularly the firepower Microsoft and AT&T (T) have put behind Nokia's (NOK) Lumia, the tablet space might end up an equally as interesting battleground.
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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $121.30 0.00%
GOOG $625.61 0.00%
MSFT $46.70 0.00%
FB $94.01 0.00%
TSLA $266.15 0.00%

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs