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!

Worry Less About Google, More About Microsoft

Stocks in this article: GOOG AMZN MSFT AAPL

Microsoft's main rival is not Amazon, but Apple (CLNE), and there it's being beaten badly, as Wired explains . The historical roles have fully reversed, with Microsoft offering the niche product in the Surface tablet, while Apple controls the mass market through the iPad. This is even reflected in the PC niche, where sales are not just declining but where the iMac is gaining share steadily.

So, sure, both companies had a disappointing quarter. Google's results are still too tied to advertising. Google had to absorb both the cost of acquiring Motorola and of downsizing it.

But Google will survive. Its cloud leadership is not threatened. Its problems lie entirely in how it can monetize its advantages.

By contrast Microsoft has lost its advantages. It's Azure cloud is more costly than the clouds of Google and Amazon. Its "moat" -- the PC and enterprise server software that keeps competitors at bay -- is losing its edge in the face of competition from IBM (IBM), Oracle (CLNE) and other cloud-based technologies.

Even if Windows 8 turns out to be much better than expected, it's unlikely to gain a double-digit share of either the phone or tablet market.

This time next year, Microsoft will be increasingly threatened by the cloud, its Windows 8 will have peaked, while Google will be fully engaged in monetization. I have shares in both Microsoft and Google, but I'm likely as not to take my lumps on Mister Softee and put that money back into Google, maybe soon.

Time may have passed Microsoft by, but the age of Google is just beginning.

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

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

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 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

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