In 2014, Microsoft Corporation (NASDAQ:MSFT) has not been the most favorite tech stock for many investors. Many investors preferred Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOGL) over Microsoft. But, Microsoft has displayed a consistent growth with a 9% increase in share price YTD. Chairman and Co-founder of StockTwits, Howard Lindzon talked about his outlook for Microsoft on Bloomberg.
It has just been Apple day for quite some time now, as the Microsoft days were long gone. Lindzon said that Microsoft Corporation (NASDAQ:MSFT) doesn’t deserve that status in 2014. But, he mentioned that they had a very good 2013.
“I think, they don’t necessarily deserve one in the year 2014. But if you are an investor that started buying last year, everyday has been Microsoft day. I am one of those investors. […] Microsoft made the change at CEO. There is all these funds that now are moving into the stock,” Lindzon said.
There has been a debate for quite some time that Microsoft Corporation (NASDAQ:MSFT) might regain their presence in the market through their consumer products or just the brute force of the enterprise. Lindzon pointed out that from a Wager standpoint, it might just be the brute force of the enterprise. But he mentioned that the situation is not as bad as it used to be.
Steve Ballmer, the former CEO of Microsoft Corporation (NASDAQ:MSFT), has decided to leave Microsoft Board in August. Lindzon thinks that this might be a good thing for the brand. He mentioned that Google Inc (NASDAQ:GOOGL)’s Chromebook has been a hit, which proved the fact that the product need not be an Apple Inc (NASDAQ:AAPL)’s product to be a hit in the market. He also said that unbundling of Microsoft Office and the acquisition of Skype might work in favor of Microsoft.
Microsoft Corporation (NASDAQ:MSFT) hasn’t been involved in a lot of Joint Ventures and acquisitions. Lindzon mentioned that Yahoo! Inc. (NASDAQ:YHOO) has done some acquisitions, which have not been adding value to the company until recently. He also pointed at Alibaba IPO’s unpredictable scenario. He talked about salesforce.com, inc. (NYSE:CRM), which is making some decent acquisitions, that might help them in future. Lindzon feels that buying the future might be a risk for the company’s current operation.
Lindzon added that Microsoft Corporation (NASDAQ:MSFT) doesn’t have the courage to do such acquisitions, foreseeing the future. He said that they need to find, embrace and encourage such acquisitions.
On Alibaba, Lindzon said that he doesn’t trust Chinese economy and companies and he feels that the experience in US market is not enough to enter the Asian market.
Among the top investors for Microsoft Corporation (NASDAQ:MSFT) is ValueAct Capital, managed by Jeffrey Ubben. As of June 30, 2014, they hold around 74 million Microsoft shares.
Disclosure: None
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