Microsoft’s challenge is creating an operating system that is suitable for both a tablet, which has a touch interface, and a desktop, which uses a keyboard and mouse. Despite the challenges, Windows 8 is faster than Windows 7. It boots faster, provides better management utilities for users, and fits the needs of both consumers and power users. If Microsoft and its hardware partners market the improved performance, the software giant could see stronger Windows sales.
Weak sales for Windows 8.1 could also be bad news for Hewlett-Packard (HPQ). Shares are up nearly 25% in the past year, helped by cost-cutting and better sales results. Investors do not anticipate Microsoft’s Windows 8.1 to be a catalyst for higher PC sales, which explains low forward P/Es. Microsoft trades with a forward P/E of 11, while HP trades at 7:
Analyze These Ideas: Access a performance overview for all stocks in this article.
Written by Chris Lau, Kapitall Contributor
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts