This Day On The Street
Continue to site
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

Microsoft Is the Real Technology King

NEW YORK (TheStreet) -- It's astonishing how often I receive perplexed looks on people's faces when I respond that Microsoft (MSFT - Get Report) is the hot tech stock to own.

It happens so often that I now anticipate and expect it. I think that's exactly why Microsoft remains a stock you want in your portfolio.

MSFT Chart

We've all heard the arguments against Microsoft. Apple (AAPL) tablets are displacing desktops, Google (GOOG) apps are destroying Microsoft Office's margins, piracy in China and other countries retard growth, and on and on.

The problem for the bears is the numbers don't support their thesis. Revenue is at all-time highs, net income is trending near the record of 2011 and Satya Nadella, the new CEO, is the right person to lead the company.

Prior to ascending to the helm, Nadella led Microsoft's Cloud and Enterprise group. According to Synergy Research Group, Microsoft's year-over-year cloud growth rate is 154%. That compares to number one-ranked Amazon's (AMZN) 67% growth rate. Anyone who claims Microsoft is no longer a growth company isn't paying attention.

Microsoft has its work cut out to catch Amazon's estimated 30% market share, albeit Microsoft has the ability to steal as much market share from Amazon as it wants. Amazon is in the midst of shareholder pushback resulting from a lack of relative profits. Microsoft can easily and should be expected to squeeze Amazon's cloud margins.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr 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

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
MSFT $50.00 0.20%
AAPL $93.53 -1.40%
FB $116.11 -0.53%
GOOG $691.77 0.11%
TSLA $238.89 -3.60%


Chart of I:DJI
DOW 17,720.33 -110.43 -0.62%
S&P 500 2,057.78 -18.03 -0.87%
NASDAQ 4,759.2590 -46.0320 -0.96%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs