Friday, April 19, 2013

Investopedia: Weak PC Growth And Slow Mobile Penetration Weighing On Microsoft

It really is too bad that the conversation on Microsoft (Nasdaq:MSFT) always seems to be dominated by what the company isn't. Bearish analysts and investors hammer the company for its heavy reliance on PCs and fault the company for letting Apple (Nasdaq:AAPL) and Google (Nasdaq:GOOG) build such a large lead in mobile operating systems, while also complaining about the company's relatively weak online business and below-average entertainment profitability.

Those are legitimate criticisms, but only to a point. It is not as though smartphones and tablets have replaced PCs in the office environment, nor are they likely to anytime soon. What's more, Microsoft has a bigger (and faster-growing) presence in enterprise software than is usually appreciated. Last- and by no means least, Microsoft remains an exceptionally profitable company that generates exceptionally large amounts of cash every year.

Please click below to continue:
http://www.investopedia.com/stock-analysis/041913/weak-pc-growth-and-slow-mobile-penetration-weighing-microsoft-msft-aapl-goog-orcl-ibm.aspx

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