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

How will Microsoft use Office?

Rumor has it Microsoft will launch Office for iPad as early as November of this year. The company might even have plans to build a version that can run on the Android operating system.

While it made sense for Microsoft to provide Office for iOS, I am not sure it should go the same route given the mobile landscape and its place in it.

It seems that, in addition to the synergy Xbox can provide across devices, Microsoft's other edge over Apple and Android is the widely used and generally well-liked Office suite. In fact, Morgan Stanley (MS) analyst Kathryn Hubert expects Microsoft to surge past Android for the No. 2 spot, behind Apple, in the tablet market once Windows 8 hits the streets. The difference maker, according to Hubert: Office.

With that in mind, I simply do not see the sense in making Office available on the competition's mobile operating systems. It's one thing to do this during a time and in a space (computers) where you compete from a position of strength. But that's hardly the case in mobile; Microsoft needs every advantage it can get as it looks to challenge Apple and Google, let alone take second or, less likely, first place.

How I am Playing It

If Microsoft keeps the mobile version of Office for itself (it's a no brainer!), I will become ultra-bullish. Ultra bullish means the stock might become one of my top holdings.

Everybody uses Office. Most people use it on a PC. The ability to sync the work you do in Office with mobile devices -- and to maybe even pull it up on your television screen via an Xbox Live account -- could break the game. That's why it's a no-brainer.

In any event, with or without Office as an exclusive weapon, I still like the odds that Microsoft wins the living room and, at a minimum, makes some meaningful noise in mobile with the Windows 8/Xbox combination. I tend to think it will do more than make noise; expect Microsoft to disrupt the space going forward.

I am long MSFT January $30 calls. I intend to add to this position on any dips related to broad market weakness. No matter what happens in Europe or on a macro level in the United States, I anticipate the story Microsoft is writing at the moment to play itself out as what could be one of the few bullish narratives in another otherwise topsy-turvy market. Expect to see me in some at-the-money MSFT January 2014 calls as well before the year is out.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

At the time of publication, the author was long MSFT and NOK.
2 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 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

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