Why I think you should invest in Microsoft (MSFT/NASDAQ)
Microsoft is an innovator in the way everyone uses PC technology. Microsoft Windows was a real breakthrough in the 80s-90s, although nowadays they have to cope with competition from open-source Linux Ubuntu or the operation system of Apple. Even though they haven't broken out in tablet apps yet they continue this innovation with the Kinect. This peripheral was designed with video game user in mind but this will become the next way in how we interact with our home and work computers.
In respects of the Kinect it is now the fast selling consumer electronic device in history. It has sold over 10 million units since its release on November 4th, 2010. The only current competitor to this product is the Sony Move which has only sold 1 million units currently. So in comparison the Kinect has out sold the move 10 to 1 in North American markets.
What's setting this device up as being the changing force in home computing is the release of Microsoft's development kit for Windows which releases this quarter? This will allow individuals and companies program not just to program games but to use this for unique interactive business solutions. This will allow everyone to utilize simpler interfaces and provide businesses with the ability to offer unique ways of telecommunication.
The installed user base for Microsoft products is well over 500 million worldwide. When you compare this to Apple's installed user base of 25 million there is really no comparison to Microsoft. Yes, Apple has products that seem to trend better than Microsoft's but if you look at practicality then you will see why Microsoft is the leader.
The installed user base will continue to increase as Microsoft leads the way in other innovations that Apple doesn't have their pulse on at this moment. Apple is the leader in the tablet market but they are still behind in business and consumer software support. As Microsoft continues to expand their cloud computing innovations many businesses will continue to rely on them to help maintain servers as consumers will continue to rely on them for inexpensive computing solutions.
This is support by stock growth over the last five years for the two companies. If you invested in Microsoft in January of 2006 you would have seen an investment return of over 100 percent as stock has increased from 20.12 per share to upwards of 42.00 dollars a share currently. Now Apple currently is sitting at over 339.00 a share after seeing rapid growth in the last five years but this isn't when you look back at long term stability.
AAPL has had multiple declines in past decades from releasing subpar products. Their current product bas may seem great when looking from a consumer stand point but there is a possibility of sudden fall which has had to this company frequently since their founding. Microsoft's stock has helped maintain a stable value without radical increases or decreases.
Microsoft stock might not be the stock for those who are looking to money quickly but the reason I recommend this to any portfolio is because of stability. Their financials have always improved and they are always looking for ways to innovate the field of consumer electronics without taking unneeded risks. On the business side of computing they are making leaps in ways we do business and are able to maintain the stable flow of internet business. There isn't a reason why I wouldn't recommend this stock to anyone.