Microsoft in 2011: Some Big Gains ... and Upcoming Challenges
The following video is part of our "Motley Fool Conversations" series, in which Eric Bleeker, senior technology editor, discusses topics around the investing world.
In this edition, Eric continues his review of how major tech companies performed in 2011. Looking at Microsoft, Eric is impressed with gains in the company's entertainment and server divisions. However, challenges facing the company seem to outweigh opportunities. While investors latch onto Microsoft's lack of success in mobile, Eric's more concerned with other areas. Specifically, he wonders how Microsoft will keep up with big-tech peers such as Intel as PC growth moves to emerging markets, where piracy decimates Microsoft's ability to profit along with its hardware-centric peers.
Still, heading out of 2011, the company continues trading at a P/E that's attractive and is committed to paying back shareholders through its continuing growth of its dividend payout. For Microsoft, the opportunity isn't necessarily huge growth in the years ahead; it's that the company trades cheaply and is increasingly receptive to returning capital back to shareholders.
Looking for the technology trend set to define not only 2012 but also the entire decade ahead? We're creating 60% more data every year. That's an astounding growth rate that presents opportunity for investors who can find the leaders not only storing the data but also finding new, innovative ways of analyzing it. To take advantage of this gigantic technology opportunity, The Motley Fool has compiled a new report called "The Only Stock You Need to Profit From the NEW Technology Revolution." The report highlights a company that has gained more than 200% since first recommended by Fool analysts but still has plenty of room left to run. Thousands have requested access to this special free report, and now you can access it today at no cost. To get instant access to the names of this company transforming the IT industry, click here -- it's free.
At the time this article was published Eric Bleeker owns no shares of the companies mentioned here. The Motley Fool owns shares of Intel and Microsoft and has bought calls on Intel.Motley Fool newsletter serviceshave recommended buying shares of and creating bull call spread positions in Microsoft and Intel. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.
Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.