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!

Will Apple or Microsoft Be Under More Pressure?

Still, Apple has enough cash to buy Amazon.com (AMZN) outright. Its current dividend comes to over $10 per share, per year. How bad can things be?

On the surface, Microsoft's problems look more serious. Its consumer brand is weak. This is hurting its software developers and hardware makers. Even Intel (INTC) is down 15% in value over the last five years because of its close Microsoft ties, while rival ARM Holdings (ARMH), whose designs are used by Apple and other device makers, has doubled.

Still, Microsoft has areas of strength. Its Windows Server is the Apple of the server world not least because of past investments in security, eWeek writes. Its Azure cloud is quietly moving ahead, adding new clients as Daily Finance notes, and buying new capabilities like StorSimple, as Cloud Times writes.

Microsoft has also built strong brands in XBox and Skype, which are being fully integrated in Windows 8, and the Bing search engine (which Yahoo! (YHOO) uses) will be embedded in both the operating system and Internet Explorer 10, which remains a contender in the browser wars.

Microsoft, in short, is a more diverse company than Apple, with a lot more interesting things going on for an ambitious young executive, as opposed to the top-down nature of Apple, where fewer people give orders and more people just take them.

Over the longer run, I think Microsoft grows faster from here than Apple because there are more directions in which it can grow. I think it finds a new generation of leadership and a year from now will be seen to be on the right path.

There's a reason why Microsoft still trades at an earnings multiple of 15.24 while Apple is at 13.68 as trading opens. Investment, as a long game, favors the diversified.

At the time of publication, the author had positions in INTC, ARMH, MSFT and AAPL.

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!

COMPARE ALL SERVICES
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 17,086.63 -26.91 -0.16%
S&P 500 1,987.01 +3.48 0.18%
NASDAQ 4,473.6970 +17.6810 0.40%

Brokerage Partners

Rates from Bankrate.com

  • 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