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

How Google Clobbers Microsoft

What about the smartphone? I actually think Windows Phone is an excellent product, with the OS performance easily holding its own against the iPhone and Android. The problem is that being equally good -- or even slightly ahead -- is not likely good enough.

Microsoft is late to market, and many of its cloud service tie-ins are arriving late to market, or aren't there at all. That said, Microsoft should be a player here -- far, far behind Google and Apple.

This brings us to Windows 8 for the PC. Do your friends salivate at the idea of upgrading to Windows 8? No and neither do mine. Some are curious to try it, as they have some hope that it might turn out to be something interesting. Sadly for Microsoft, the people who have tried a Beta version have almost uniformly sworn to never get it, running into the arms of Apple and Google instead.

I like some of Microsoft's products. Windows 7 was a success. Windows Phone is a solid product. Skype is dominant. The Xbox 360 is best in class. Outlook has no decent competitor from Google or Apple. However, these positives are not stemming the overall tide.

The tide carries a market share shift in only one direction: Out from Microsoft, and into Google and Apple. Apple has been the stock market's darling for a few years now, and for good reason. Google, however, is coming on strong, taking market share from Microsoft Office and other cloud services.

When Windows 8 largely fails in the coming months, as I expect it will -- lack of interest in an upgrade cycle -- and Google makes its push for the Chrome OS PCs (Chromebooks and Chromeboxes), people will see much more clearer how Google's growth rate will continue to be vastly superior to Microsoft's. For Google, Apple is the toughest competitor -- not Microsoft.

At the time of publication, the author was long GOOG, AAPL and FB, and short MSFT.

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

3 of 3

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 $130.54 0.20%
FB $80.29 1.39%
GOOG $533.99 0.35%
MSFT $47.23 0.79%
TSLA $249.45 -0.54%

Markets

DOW 18,040.37 +29.69 0.16%
S&P 500 2,111.73 +4.34 0.21%
NASDAQ 5,082.9290 +12.9030 0.25%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs