Microsoft Powers the Dow's Triple-Digit Jump

GameStop shares slump following a big announcement from Wal-Mart.

Mar 18, 2014 at 2:30PM
Daily Fool

The markets have sustained yesterday's rally as investors hope for the best following Russia's move to formally annex Crimea. While the situation is still in flux, the Dow Jones Industrial Average (DJINDICES:^DJI) has made the most of investor optimism, rallying higher by more than 107 points as of 2:30 p.m. EDT. Microsoft (NASDAQ:MSFT) has surged 4% to the top of the Dow today. Let's catch up on what you need to know.

Will Microsoft shake up mobile?
Microsoft's new CEO Satya Nadella is looking to make a big impact in the tech world this month, according to sources cited by Reuters and other news outlets. The reports say that Nadella plans to roll out Microsoft's Office platform for Apple's iPad on March 27. The move could help Microsoft gain much-needed traction in the tablet market, where the company's Surface has found only modest success so far. By expanding Microsoft's powerful suite of software to one of the market's most widespread tablet lines, Nadella could both delight investors and carve out a lucrative niche in the tablet segment without counting on a market share blitz from the Surface.

This would be the second time Microsoft has turned Office toward Apple's mobile products, as the company released a mobile version of the software for the iPhone in June 2013. Analysts believe Microsoft could be missing out on huge revenue streams by holding back Office and its software prowess from leading mobile products such as the iPad. With mobile's growth driving back the PC market, this move -- if sources are accurate -- would be smart Microsoft's long-term future.

The Dow's software king made news today on the hardware front as well, announcing that its new Xbox One entertainment and gaming console is set to release in 26 additional international markets this September, including India, Japan, and the Netherlands. The Xbox One's launched last year with a strong burst of momentum, but it trails rival Sony's (NYSE:SNE) PlayStation 4 console so far in worldwide sales -- a trend not helped by Microsoft limiting the Xbox to just 13 countries last year. Sony released the PS4 into more than four times that number of markets. Microsoft's move to expand its global reach should help its console close the gap with the PS4 in 2015.

Meanwhile, leading used video game retailer GameStop (NYSE:GME) slumped by 3.5% today after retail king Wal-Mart (NYSE:WMT) announced its intentions to give store credit for used games at its stores. Wal-Mart's stores have taken a beating lately as growth has slipped, and the move's the latest push to light a fire under the company's business as the new generation of video games begins to take hold. While it's uncertain if game customers will embrace Wal-Mart's move to the extent that they helped GameStop surge to the top of this business, the entry of one of America's retail leaders into this niche makes the GameStop's dominance all the harder to maintain in the coming years.

1 stock that could top the Dow's best this year
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Dan Carroll has no position in any stocks mentioned. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple, GameStop, and 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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