3 Reasons to Sell Microsoft (MSFT)

3 Reasons to Sell Microsoft

The following video is part of our "Motley Fool Conversations" series, in which senior technology analyst Eric Bleeker and consumer goods editor/analyst Austin Smith discuss topics across the investing world.

In today's edition, Eric takes a look at three reasons to sell Microsoft. He keys in on three key areas: piracy, leadership, and inefficiency. On the piracy front, growth in PCs is moving toward emerging markets, where piracy is rampant. That could leave Microsoft's growth behind similarly priced peers like Intel in the coming years. When it comes to leadership, Steve Ballmer has been behind the curve on many initiatives, and Eric also is disappointed with areas of waste such as Microsoft's out-sized R&D spend and lack of focus in that arena. To see why Eric's circling these three areas of concern, watch the video below.

Microsoft might be falling behind in the mobile revolution, but there's no reason investors should ignore a field that's the most powerful technology change in a generation. The Motley Fool has just released a free report on mobile named "The Next Trillion Dollar Revolution" that details a hidden component play inside mobile phones that also is a market leader in the exploding Chinese market. Inside the report, we not only describe why the mobile revolution will dwarf any other technology revolution seen before it, but we also name the company at the forefront of the trend. Hundreds of thousands have requested access to previous reports, and you can access this new report today by clicking here -- it's free.

Jeff Fischer and team have demystified options. And they can rack up income like $1,030... $2,626... and $3,228 on a schedule you can set your watch by!
That's why we're glad to announce every single one of their closely guarded strategies is available to YOU during May and June – 100% FREE, no strings attached! Just enter your email address in the box below...

Austin Smith owns shares of Intel. Eric Bleeker has no positions in the stocks mentioned above. The Motley Fool owns shares of Apple, Intel, and Microsoft. Motley Fool newsletter services recommend Apple, Intel, Microsoft, and VMware. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment icon found on every comment.

Report this Comment On May 17, 2012, at 12:24 AM, applefan1 wrote:

Seems to me not too long ago, MF was telling people to buy Microsoft, and now you're saying sell? Microsoft will probably never go much past the 30's. I just don't see them doing it.
They have to sell a $99 service to remove the bloatware to make their own OS faster? Come on. That's their big way to increase earnings?
Report this Comment On May 17, 2012, at 12:30 AM, applefan1 wrote:

Hmm.. What kind of message is Microsoft sending to their customers?
Hey Mr. Customer,
Due to the fact that the various OEM suppliers of Microsoft PCs have to make money from third party software mfg, because they can't make any money any other way, we have a plan to remove the crap that was put on your system to make our software run faster, but we charge you $99, give you only 90 days of phone support and some virus protection software due to the enormous amount of viruses that attack our operating system.
What do you think Mr. Customer. Just bring your computer to anyone of our only 14 stores and we'll remove the bloatware.
Another Microsoft Innovation..
Sincerely,
Microsoft
Whenever you buy Microsoft, you get taken.
Report this Comment On May 18, 2012, at 10:45 PM, YesSirrRee wrote:

MSFT WILL GO TO 62.00 when the nokia phone takes hold, nevertheless more money can be made with stocks that have room to run."
1)NOKIA
2)SOCIAL RESPONSIBILITY
3)FACEBOOK FRIENDLY
LONG MSFT BUYLOWSELLHIGH--THIS BULL CAN RUN )))---
Report this Comment On May 18, 2012, at 10:47 PM, YesSirrRee wrote:

The x-box will be the next generation big for MSFT
a universal tool for the windows 8 platform we like the company, in addition we like the fact that MSFT has
joined Ford for some projects"))
Report this Comment On May 19, 2012, at 10:13 AM, EJnsn11 wrote:

@YesSirrRee you really think that the market is big enough for MSFT to grow to 65 a share? I don't think they'll move enough product to create such a growth in revenue

updated 3 hours ago Sponsored by:
	DOW	15,294.50	-12.67	-0.08%
	S&P 500	1,650.51	-4.84	-0.29%
	NASD	3,459.42	-3.88	-0.11%

MSFT	$34.15		-0.46	-1.33%
Microsoft		CAPS Rating:

INTC	$24.05		-0.02	-0.08%
Intel		CAPS Rating:

VMW	$72.38		-1.22	-1.66%
VMware		CAPS Rating:

^DJI	$15294.50		-12.67	-0.08%
DOW JONES INDUSTRI…		CAPS Rating:

7

3 Reasons to Sell Microsoft

Comments from our Foolish Readers

Report this Comment On May 17, 2012, at 12:24 AM, applefan1 wrote:

Report this Comment On May 17, 2012, at 12:30 AM, applefan1 wrote:

Report this Comment On May 18, 2012, at 10:45 PM, YesSirrRee wrote:

Report this Comment On May 18, 2012, at 10:47 PM, YesSirrRee wrote:

Report this Comment On May 19, 2012, at 10:13 AM, EJnsn11 wrote:

Add your comment.

Compare Brokers

Report This Comment

Sending report...

Today's Market

Create My Watchlist

You don't seem to be following any stocks yet!

Related Tickers

AAPL	$442.14		+0.79	+0.18%
Apple		CAPS Rating: