Microsoft's Jump Leads the Dow Jones Today Higher

Microsoft's keeps the top three spots in the Apple App Store.

Mar 31, 2014 at 1:31PM

Microsoft is leading the Dow Jones Industrial Average (DJINDICES:^DJI) higher as the company's momentum from last week continues. As of 1:45 p.m. EDT, the Dow was up 130 points to 16,453. The S&P 500 (SNPINDEX:^GSPC) was up 15 points to 1,872.

Microsoft is the top Dow stock today, up 2.9% to $41.347, on a day when 26 of 30 blue-chip stocks are positive. Microsoft last week launched iPad versions of its most popular Microsoft Office products, namely Word, Excel, PowerPoint, and OneNote, and made the iPhone and Android versions free. The apps quickly took the top spots in the Apple (NASDAQ:AAPL) App Store and have remained there all weekend.


Source: App Annie.

While basic versions of the apps are free, they only allow users to read file without making any changes. Full editing or file creation features will require users to pay for Office 365, which can run anywhere from $100 to $200 a year.

Some analysts worry that Microsoft's launch won't be successful, as cheaper versions of productivity software are available, including Google Docs, Open Office, and Libre Office. So far that doesn't seem to be the case, with App Annie data showing that Microsoft Word is currently the No. 7 top-grossing app in the App Store, while Microsoft Excel sits at No. 14.

While some claim this was a strategic move by the CEO, it was more of a necessity for Microsoft to stay competitive. Microsoft has historically been slow to develop versions of its productivity suite for other operating systems, preferring to lock customers into using Microsoft Windows. As customers' computing time has shifted solely from desktops to mobile devices, Microsoft's mobile devices have not kept up, Microsoft's Surface tablet has just a 2% market share. At the same time, with the proliferation of cheaper alternatives to Office and many companies now allowing their workers to bring their own devices, it's not enough to just sell to corporate IT departments anymore. As such, Office not being on iPad was a reason for companies to switch from Office to one of Microsoft's competitors.

This move is likely to be profitable, but not a game changer, for Microsoft. There there are an estimated 160 million iPads out there, and Apple gets a 30% cut of all app sales. Bernstein analyst Mark Moerdler estimated "that if 10 percent of the iPad install base were to subscribe to Office then this could add 15 million subscribers and generate $1.1 billion to $1.5 billion in consumer Office subscription revenue per year." However, it is hard to estimate what percentage of iPad owners don't already have Microsoft Office subscriptions, either through work or personally.

Dan Dzombak has no position in any stocks mentioned. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple. 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.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.


Compare Brokers