Things Go From Bad to Worse for the PC Market

Investors get a grim reminder that the PC market's best days might in fact be behind it.

Mar 6, 2014 at 1:30PM

The global PC market hasn't exactly been a bed of roses over the past several years.

And even as it comes off a historically bad year, PC players like Microsoft (NASDAQ:MSFT) and Hewlett-Packard (NYSE:HPQ) are likely to be forced to bear another challenging PC market once again in 2014.

From bad to worse
Rewinding to this time last year, research firm IDC broke the unfortunate news that the global PC market had contracted 3.7% in 2012. Equally alarming, the research company also envisioned the personal computer market to decline by 1.3% in 2013, with envisioned being the operative word.

Fast-forward to today, and the same research firm now notes that the PC market shrank by 9.8% last year, fell another 6% in 2014, and should now remain in decline through the year 2018.

This presents clear challenges for companies like Microsoft or Hewlett-Packard that remain highly levered to the PC market to drive their respective financial performance. Worse yet, neither Microsoft nor Hewlett-Packard has been able to establish a meaningful presence in the tablet market that has so disrupted the PC market. Many expect Microsoft to eventually navigate this tricky transition. However, the future mobile future remains less certain for Hewlett-Packard. And in the video below, Fool contributor Andrew Tonner looks at the PC market outlook and how investors should be framing these challenging circumstances as well.

The PC market's pain is this under-the-radar company's gain
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Andrew Tonner has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Intel. It also owns shares of Microsoft. 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.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't 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.

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