This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Microsoft Mobile Is Ready to Roar in 2014

Stocks in this article: MSFT SPY AAPL GOOG NOK MSI T

NEW YORK (TheStreet) -- Many don't consider Microsoft (MSFT) the sexiest of technology stocks, but rising portfolios never go out of fashion. I've been solidly bullish on Microsoft in 2013, and as we move toward 2014, I consider the tech giant a strong buy. After writing "Microsoft Is a Must-Have for Your Portfolio," I received exorbitant praise for my insights in the comments:

"I've read stories like this for the past ten years. And the stock has barely moved. They've acquired companies, tried new things, but still a flat stock. I believe it's a cultural issue and it's not easy to change the culture in such a large company for a new CEO. And if they choose Elop, it's doomed from the beginning. Look at what happened to Nokia's stock after he joined."

"Windows based servers on the cloud? Give me a break. Windows is a POS, only surviving because of inertia. It is stunningly fragile, has a truly disgusting architecture (if you could call it that) resembling a pile of excrement on top of a pile of vomit in a pool of pus. Finally, Microsoft has singlehandedly set back computing by 20 years."

Well, commenters may not agree with me, but the numbers are on my side. Since the article, the SPDR S&P 500 ETF Trust (SPY) returned 4.85%. Very respectable. But Microsoft returned over 15% while also paying a greater dividend yield. Not bad for three months. The mobile market has me excited for Microsoft in 2014, and I'll explain why.

In the battle of mobile market share dominance, Apple (AAPL) and Google (GOOG) are normally viewed as the winners while BlackBerry  (BBRY) is considered the loser, having lost its way and income stream. With BlackBerry trading at under $6 a share, the market has all but lost faith in the company.

But I'm long BlackBerry. Shares of BlackBerry are so cheap! I think the most shareholder value would come from a sale that may not happen in time, but I'm still long. I don't suggest betting the farm on it, but as a small-allocation lottery ticket, it's compelling.

One way or another, I think BlackBerry won't be the same this time next year. In my opinion, the real mobile space winner in 2014 won't be BlackBerry, though. Watch for Microsoft in 2014 to capture market share from Google.

It's hard to deny the recent success of Microsoft and Nokia (NOK), although not so long ago they were left for dead on the side of the information superhighway. According to Counterpoint, Nokia is now the fourth largest smartphone brand in the United States and holds a record high 4% market share. That's greater than Google's Motorola Mobility. Beating Motorola isn't the end goal, but it does demonstrate that, to paraphrase Mark Twain, reports of Windows Mobile's death are greatly exaggerated. For Microsoft investors, the best is yet to come.

Microsoft can say what they will about Bing, but "just as good" isn't good enough for me to switch my searches from Google to Bing. Still, Microsoft has another compelling reason for consumers and business users alike to migrate some Google activities to Microsoft.

SkyDrive, the Microsoft web offering that includes online versions of Outlook mail, Office Word and Excel isn't new. I've used it for a couple of years now, along with Google's Drive and Gmail. What's new is that SkyDrive has leapt ahead of Google in terms of features and ease, and users are starting to catch on.

1 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!

Markets

DOW 17,959.44 +154.64 0.87%
S&P 500 2,078.54 +7.89 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

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