Facebook Inc (FB), Microsoft Corporation (MSFT): Picking the Right Stocks to Benefit From Mobile Growth

It was also announced (by Microsoft) that the new Lumia 928 launches on Verizon Communications Inc. (NYSE:VZ) this week. The three-way partnership is a win for everyone involved. Microsoft and Nokia both get increased exposure to the largest mobile subscriber base in the U.S., while Verizon is not so secretly rooting for underdog platforms like Windows Phone in the hopes that competition will reduce subsidy expenses.

This week, Verizon Communications Inc. (NYSE:VZ) also told shareholders that its focus will be more on paying down debt and growing its cash pile for the upcoming spectrum auctions. Some analysts think these comments suggest that the company may still be planning to use the distributions as a bargaining chip to get Vodafone to sell its 45% stake in the company.

The phone on which Facebook Inc (NASDAQ:FB) Home comes pre-installed, the HTC First, has seen its price drop to $0.99 from $99 and is rumored to be on the verge of cancellation. This will undoubtedly call for a drastic change in strategy by HTC, but it also means a chance for it and partner AT&T Inc. (NYSE:T) to offer better alternatives.

AT&T Inc. (NYSE:T) expects much better results in its wireless business in the second quarter after a weak start to the year, based on a statement by Chief Executive Randall Stephenson. Last month, the number two U.S. mobile provider reported a net loss of 69,000 cellphone subscribers in the first quarter, sparking fears of a slowdown in the market. Stephenson didn’t come out and say it, but it was implied that it was from the Facebook Inc (NASDAQ:FB) Home debacle. In the last few weeks AT&T cut the price of the HTC phone running Home.

Conclusion

So, in essence, we have two companies profiting from all those around them with minimal growth for themselves. It is never intentional for companies to do this, however, with such a volatile and uncertain venue like predicting consumer trends in mobile phones, it can be a fortunate side effect for investors in the right place. I see continued profit for phone providers like AT&T and Verizon, as well as phone makers like Nokia.

The article Picking the Right Stocks to Benefit From Mobile Growth originally appeared on Fool.com and is written by Bill Edson.

Bill is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.