In the video below, Fool analysts Charly Travers and Austin Smith look at some of the risks facing Microsoft (NASDAQ:MSFT).
For decades, Microsoft was the case study of a dominant, wide-moat company, with a stout balance sheet and a hold on a market that seemed impenetrable. Then, competitors like Apple (NASDAQ:AAPL) began to chip away with iPods and iPhones, capturing the growing mobile market that Microsoft was missing. The destruction caused by devices like tablets cannot be underestimated, Austin says.
Meanwhile, Google (NASDAQ:GOOGL) is challenging Microsoft on another front, taking on the latter's Office products with Google Docs
But Microsoft is not defenseless. It is responding. With its own tablet and mobile operating system, Microsoft is looking to face its competitors head on. With Microsoft's new products on the market, the next quarter could be very telling as to how that fight is starting to shape up.
Austin Smith owns shares of Apple and Google. Charly Travers has no positions in the stocks mentioned above. The Motley Fool owns shares of Apple, Google, and Microsoft. Motley Fool newsletter services recommend Apple, Google, Microsoft, and Procter & Gamble. 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.