Microsoft Corporation (MSFT)’s Moats Rapidly Being Eroded

Surface:Only skin deep?

Finally, Microsoft has come out with the Surface tablet. But despite an ad campaign which, according to Paul Thurrott at Windows Supersite, reportedly cost $400 million, I have yet to meet a single person who owns one. As a shareholder, I would love to see the ROI from these ads, but you can’t; Microsoft didn’t even break down Surface sales in its latest quarterly report.

Microsoft Corporation (NASDAQ:MSFT) has a tremendous arsenal of cash, and it’s not out of the game yet. But its rivals’ continued successful attacks on what only years earlier was deemed an impenetrable moat have to be concerning for shareholders. Much like consumers aren’t upgrading en masse to Windows 8 or buying Surface, despite it’s low valuation Microsoft seems like a potential value trap. It may be time for investors to consider selling.

Margie Nemcick-Cruz has no position in any stocks mentioned. The Motley Fool recommends Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOG). The Motley Fool owns shares of Apple, Google, and Microsoft.