Google Can't Crush Microsoft

NEW YORK (TheStreet) -- Microsoft (MSFT) is one of my most bullish picks for 2014. So you can imagine my surprise to read in TheStreet that Google (GOOG) will crush Microsoft.

Microsoft performed remarkably well in the last year. Since the start of 2014 it and Google are both up about a dollar a share, albeit Google trades for $1,118 and Microsoft is near $39.

So, Rocco Pendola, given a choice of making a dollar, I'll take Microsoft's return every time. After adding Microsoft's 28-cent February dividend, Microsoft's investors are ahead over $2 a share since the start of the year.

A quick comparison of the two respective charts says it all.

Microsoft's chart is trending higher, and Google's price action demonstrates weakness. Now I know Rocco Pendola's article refers to the companies' execution of their strategies, but I arrive at the opposite opinion and spelled out why in "Microsoft Fires Free Windows Phone at Google, but May Hit Apple" (AAPL).

There's no question Google efficiently and effectively shifted Microsoft's user base from high-priced operating systems and office programs. Gmail crushed Hotmail for years, but that was yesterday's news and today Microsoft is fighting back.

To recapture the mobile platform, Microsoft originally partnered with Nokia (NOK) to ensure at least one hardware manufacturer produced a Windows-based phone. Now there's a growing list of smartphone makers producing or about to produce Windows Mobile phones. Without the cost advantage of free software, I think Google may find an exodus of vendors supporting Android phones.

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