Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Microsoft Pushing Higher on Hope for New Products

The Dow Jones Industrial Average (DJINDICES: ^DJI  ) slipped 0.32% late in trading today as investors came back from the Independence Day holiday. There wasn't any significant economic news today, but last week ended with a Labor Department report that showed 288,000 jobs created in June, another sign that the economy is picking up steam.

Economists and the Federal Reserve predict that U.S. economic activity will return to growth in the second quarter, following the first quarter's 2.9% drop. If it does, the optimism the market is displaying by regularly hitting new highs will be validated.

Microsoft one of the Dow's leaders
One of only a handful of companies moving higher as trading wound down today is Microsoft (NASDAQ: MSFT  ) , which was up 0.4%. Investors have their eyes on a few products that would continue the company's transformation from strictly software to devices.

Microsoft is trying to make the look of its start screen more uniform across its products.

The first notable product is the Xbox One's Kinect sensor, which will soon work with Windows. The sensor is set to ship July 15 and will include a wider field of view; developers will also be able to create apps for the device through the Windows Store. It'll take time to see if the device is a success, but at least Microsoft is pushing the envelop of its offerings and doing more to integrate its wide range of products.  

Potentially more important is speculation that a smaller version of the Surface tablet is back in production. Microsoft earlier this year revealed a larger 12-inch Surface Pro 3 that is intended as more of a laptop replacement than most tablets. But there's still a hole in the product line where a smaller tablet could go, and that product is reportedly coming later this summer.  

Microsoft has faced significant criticism in recent years because it hasn't been as nimble to new markets as rivals like Apple, which invented entirely new markets. However, from an investment perspective Microsoft has still done extremely well. You can see below that over the past decade revenue is up 120% and net income is up nearly 180%.

MSFT Revenue (TTM) Chart

MSFT Revenue (TTM) data by YCharts.

As Microsoft rolls out new cloud features, further integrates its enterprise software, and gains a larger share in smartphones and tablets, the company should remain a tech powerhouse. Few companies can build the scale Microsoft has in tech, and that scale will be extremely important as devices and connectivity increase in the future.

The battle for your living room will be epic
You know cable's going away. But do you know how to profit? There's $2.2 trillion out there to be had for companies like Microsoft. Currently, cable grabs a big piece of it. That won't last. And when cable falters, three companies are poised to benefit. Click here for their names. Hint: They're not Netflix, Google, and Apple. 


Read/Post Comments (0) | Recommend This Article (0)

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 Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 3020081, ~/Articles/ArticleHandler.aspx, 9/2/2015 5:01:12 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Travis Hoium

Travis Hoium has been writing for since July 2010 and covers the solar industry, renewable energy, and gaming stocks among other things.

Today's Market

updated 7 hours ago Sponsored by:
DOW 16,058.35 -469.68 -2.84%
S&P 500 1,913.85 -58.33 -2.96%
NASD 4,636.11 -140.40 -2.94%

Create My Watchlist

Go to My Watchlist

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

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/1/2015 4:35 PM
^DJI $16058.35 Down -469.68 -2.84%
AAPL $107.72 Down -5.04 -4.47%
Apple CAPS Rating: ****
MSFT $41.82 Down -1.70 -3.91%
Microsoft CAPS Rating: ***