Google Inc (NASDAQ:GOOGL) is nipping away at the market share of Microsoft Corporation (NASDAQ:MSFT) while Amazon.com, Inc. (NASDAQ:AMZN) needs to post a profit this quarter, Colin Gillis said in an interview on Fox Business Network.According to the BGC Partners senior analyst, Microsoft Corporation (NASDAQ:MSFT) is considered by his firm as a value investment as it yields 2.8% dividend. He also noted that the share price of the technology giant is up 19% over the past year.
Gillis said that what is encouraging about the Microsoft Corporation (NASDAQ:MSFT) at the moment is that it has Satya Nadella, its new CEO, who brought confidence to the company as well as new investors who disliked the previous administration of Steve Ballmer.
However, he did say that he will be cautious about the stock for the September quarter. He said that the June quarter is the end of the fiscal year of the company which tends to post strong numbers during the period. The September quarter will be the beginning of the new year for Microsoft Corporation (NASDAQ:MSFT) as well as the first quarter where the effects of the company’s acquisition of Nokia’s handsets business can be felt.
There are still a lot of problems for Microsoft, Gillis noted, including issues in the hardware business of the company. Furthermore, he said that if people look at what is the largest operating system in the world, Google Inc (NASDAQ:GOOGL)’s Android mobile operating system has a bright future.
The BGC Partners analyst said that 1 billion smartphones running on the Google Inc (NASDAQ:GOOGL) operating system will be shipped this year, a lot more than how many personal computers with Windows will be shipped.
Furthermore, he said that when people look on Amazon.com, Inc. (NASDAQ:AMZN)’s site, many of the top laptops sold are Chromebooks running on the Chrome operating system made by the search giant. Google, it seems, is giving Microsoft a run for its money in its core business, he implied.
Meanwhile, talking about failing products, Amazon.com, Inc. (NASDAQ:AMZN)’s Fire Phone is not the company’s best effort. Furthermore, investors are getting a little tired of the company’s lackluster profits which has led to the stock being down 21% year to date, Gillis said.
The e-commerce giant offers a great service, Gillis said, but their profit every quarter is the problem with the company.
Gillis has a price target of $365 on Amazon.com, Inc. (NASDAQ:AMZN) with a “Hold” rating. In another recent discussion on Fox Business Network, Google Inc (NASDAQ:GOOGL) was said to be threatening the core business of Amazon.
Sandy Nairn’s Edinburgh Partners is a Google Inc (NASDAQ:GOOGL) investor with 140,580 Class A shares in the company by June 30. Also by the end of the second quarter, William Duhamel’s Route One Investment Company reported owning about 1.96 million Microsoft Corporation (NASDAQ:MSFT) shares. Eashwar Krishnan’s Tybourne Capital Management held 583,225 Amazon.com, Inc. (NASDAQ:AMZN) shares by the end of the same period.