This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Buy Microsoft Before it Stuns Apple and Google

Stocks in this article: MSFT GOOG AAPL

NEW YORK ( TheStreet) -- Microsoft (MSFT) 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) 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) 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

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,617.44 +260.57 1.50%
S&P 500 2,038.50 +25.61 1.27%
NASDAQ 4,708.0940 +63.7820 1.37%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs