Apple Inc. (AAPL), Microsoft Corporation (MSFT): This Tech Giant Is Switching Teams

Getting into Apple’s devices in any way can only help. Microsoft’s top line switched quickly back to growth mode after dipping in 2009. Although earnings fell last year, the company still earned $2.00 a share. Investors seem to like the company’s mobile efforts, pushing the stock up recently, but it remains in a decade-long trading range. So, there’s probably still time to get aboard this recovering industry giant.

Dinging a Competitor

What Apple Inc. (NASDAQ:AAPL) gets is the ability to hurt an increasingly aggressive competitor. Although only a nick, the wound could start to fester if the Bing switch works out well. That’s not a given. Apple tried to switch from Google’s Maps application to its own last year. Only Apple’s maps application wasn’t ready for prime time and resulted in more bad press than anything else.

Taking a slow approach with a switch to Bing, then, is probably a good idea. That said, Microsoft Corporation (NASDAQ:MSFT)’s Bing is also proven technology, so the risks are lower on that end, too. At this point, this looks like a strategic win for Apple and Microsoft.

Another Step

This isn’t a game changing shift, but it is another step in the transformation that Apple is undergoing. The stock is well off its highs, but is still wildly profitable. In fact, despite concerns of slowing sales, the top and bottom lines still advanced year over year in the first quarter, continuing a long trend.

Basically, the company has plenty of time to prove to investors that it isn’t turning into an also ran. A yield of around 2.8% and large buyback plans add to the allure. Growth and income investors should take a look, as should those seeking a turnaround opportunity.

Reuben Brewer has no position in any stocks mentioned. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple, Google, and Microsoft. Reuben is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article This Tech Giant Is Switching Teams originally appeared on Fool.com and is written by Reuben Brewer.

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