Microsoft Corporation (MSFT), Hewlett-Packard Company (HPQ) – EEI: Why Your Investment May be a Dud

Page 1 of 2

Excitement, Engagement, and the ability to Innovate: these three things often determine the success of a company. Most people would be able to find at least one these areas in which their favorite stock succeeds. Some can’t. The reality is, tech companies need these three things to work. Microsoft Corporation (NASDAQ:MSFT) and Hewlett-Packard Company (NYSE:HPQ) are prime examples of companies that either lack or have these three things working for them. Not surprisingly, they have partners that face the same issues.

Microsoft Corporation (MSFT)

Windows

Windows is becoming more and more of an afterthought than Microsoft Corporation (NASDAQ:MSFT) had hoped. Yes, Windows 8 may be faster, but for practical purposes, a duel interface actually makes it slower. Maybe you can help me figure out what it offered the desktop that was innovative, engaging, or even more exciting. Developers don’t like it and Gabe Newell, co-founder and managing director of Valve, even went as far as to say it is “a catastrophe for everyone in the PC space.” I know, there is much more to a successful device than what developers think, but what this really comes down to is what other companies are offering.

In my opinion, Microsoft Corporation (NASDAQ:MSFT) hasn’t done enough to separate itself from companies like Hewlett-Packard Company (NYSE:HPQ) to turn its efforts into long-term success. Hewlett-Packard is moving into sectors that are more exciting, engaging, and innovative than a lot of its competitors.

Moving Forward

Hewlett-Packard Company (NYSE:HPQ) (HP) has managed to think out-of-the box in more than one way. For instance, its recent partnership with Leap Motion allows its users to experience things in a new way. This technology allows users to control their computers with their hands, without touching it, and is accurate to within a hundredth of a millimeter. The question still remains as to if/when HP will build this system into their actual devices.

However, Hewlett-Packard Company (NYSE:HPQ) is also bringing Google Inc (NASDAQ:GOOG) into the picture in a way you might not expect. They unveiled a 21.5-inch all-in-one desktop that will include the Android OS (typically used in smart phones). The Hewlett-Packard Company (NYSE:HPQ) Slate 21 was shown off at a Beijing event on Monday. Some of the features of this device will include a high-definition IPS touch screen, Tegra 4 quad-core processor from NVIDIA Corporation (NASDAQ:NVDA), and will launch in September for only $399. This device will also include KingSoft’s office software, and 8GB of storage, aside from SD card slot.

Google and Nvidia

Are they exciting, engaging and innovative? One might be more obvious to answer than the other, but in their own way, they meet at least a couple of the criteria. Google Inc (NASDAQ:GOOG) has probably mastered the art of engaging with its customers better than most; after all, the term “Google” didn’t come to be because users were always on Yahoo! Inc. (NASDAQ:YHOO). The company is also known to have on of the best work environments in America – due in large part to its excitement.

Nvidia owns arguably the worlds fastest super computer. Again, this didn’t just happen–it took innovation to outperform the other tech giants. Just the fact they a company is innovative often covers the excitement factor.

Valuation and growth

Microsoft Corporation (NASDAQ:MSFT), Hewlett-Packard Company (NYSE:HPQ), and NVIDIA Corporation (NASDAQ:NVDA) have dividend yields of 2.7%, 2.2%, and 1.6%, respectively. Despite having the largest market cap, Google Inc (NASDAQ:GOOG) is the only company not issuing dividends to its shareholders. Microsoft Corporation (NASDAQ:MSFT)’s earnings yield is 5.7%, compared to HP, Google, and Nvidia’s earnings yield of -29%, 3.9%, and 6.6%, respectively. HP has shown negative earnings per share so far this year, as well as in 2012.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

Top 6 Cities For The Ultra Rich to Live in Comfort

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!