Microsoft Corporation (MSFT), Sony Corporation (ADR) (SNE): Sainthood for Bill Gates?

Recently, the computer sections of Best Buy Co., Inc. (NYSE:BBY) stores have been rather disorganized and lacking in knowledgeable sales people.  The combination of trained staff and the new low price guarantee program should provide a revitalization to the entire store.  People attracted to the new Windows stores might not buy a computer on the spot, but many of them will leave having made some kind of purchase. Those people who do buy a new computer can immediately leave with their new toy and probably a bag of new accessories.

Challenges

Microsoft Corporation (NASDAQ:MSFT) will need to work hard to continue its operating system domination.  Apple is a minor threat but its computers are too expensive for the broader market.  The problem is that Google Inc (NASDAQ:GOOG) is working hard to develop better versions of its Chrome operating system.

Google Inc (NASDAQ:GOOG) does not need to make a profit on Chrome.  Google just needs to get it into the hands of as many people as possible because it wants those people to use more Google services, so Google can show them more ads.  Google dominates the online ad business and revenue is steadily rising. The company’s mission is to destroy as many other companies’ business models as possible in the name of selling more ads.

Profits from Windows are still very important to Microsoft Corporation (NASDAQ:MSFT).  So, the company needs to be developing a strategy that will makes as much money as possible from the OS while preparing to clash with Google Inc (NASDAQ:GOOG).

The bottom line for Microsoft stock remains the same.  It is an excellent technology stock to hold in a growth and income portfolio.  Look for market dips caused by media created bad news and buy.

Eric Whiteside has no position in any stocks mentioned. The Motley Fool recommends Google. The Motley Fool owns shares of Google and Microsoft. 

The article Sainthood for Bill Gates? originally appeared on Fool.com.

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