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!

Salesforce.com's Marc Benioff: Microsoft's Next CEO?

Stocks in this article: MSFT BBRY GOOG AAPL CRM

Microsoft has tons of business segments -- Xbox, Bing, Skype, software. But Bing has remained a loser behind Google search and, unfortunately, Xbox has not been exploited for its true potential. Skype is okay for some people, but Facetime and other similar services are rendering it less relevant. 

Regardless, there are plenty of PC-ers out there and Microsoft is a huge name in the business landscape. So it has its purpose in the world. 

One could make the case that some of its businesses should be spun off to unlock shareholder value. I'm not going to get into that. I'm focused on who will do that, should it come to pass. 

Benioff would be a good fit to run the Microsoft empire. The question is whether Microsoft will open its wallet and buy the company, which wouldn't come cheap. The valuation is obviously a big part of any CRM acquisition, and has been for years. Yet, Salesforce continues to grow revenue -- increasing 84% from fiscal 2011 sales of $1.65 billion to $3.05 billion in fiscal 2013 -- while reinvesting in itself and doing its own M&A activity. 

Microsoft could do a cloud overhaul in-house for less but my point is it needs someone who can find a way to grow the company and to think outside the box, rather than just trying protect what it has already built. Complacency is never good. 

Microsoft will likely stick with the safe pick and choose someone who can boost efficiency and push around decimals to improve margins. That's a solid game plan over the next year or two.

But Microsoft needs to do something different. It has built this magnificent garden that continues to produce acceptable fruit. But as time goes on, its competors continue to invade its space, stealing acreage and lowering the crop output. 

It's time Microsoft brought in a new farmer and extended that garden, giving its shareholders some delicious new fruit.

-- Written by Bret Kenwell in Petoskey, Mich.

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW
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 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 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