Google and Microsoft Earnings Disappoint; Stock Prices Fall Back

Maybe Microsoft Corporation (NASDAQ:MSFT) would be better off doubling down on the enterprise-class software portfolio instead, leaving others to battle over consumer gadgets like tablets and smartphones. Spin-off or sell the successful Xbox operation to give it the best possible shot at rewarding investors, and let the core of Microsoft go head-to-head with International Business Machines Corp.(NYSE:IBM) in the business-class sector instead.

That stragety wouldn’t be as sexy as Microsoft’s current emphasis on chasing consumer dollars, but there’s nothing wrong with boring, predictable success. I mean, take one look at this long-term comparison between boring old International Business Machines Corp.(NYSE:IBM) and unfocused Microsoft, and then tell me which stock you’d rather have owned. (Adding Google to the same chart is almost unfair, since that stock price has grown 760% over the last decade. But Microsoft clearly can’t beat Big G at its own game, while it might stand a chance in IBM’s court.)

MSFT Total Return Price data by YCharts

The article Google and Microsoft Earnings Disappoint; Stock Prices Fall Back originally appeared on Fool.com and is written by Anders Bylund.

Fool contributor Anders Bylund owns shares of Google. The Motley Fool recommends Google. The Motley Fool owns shares of Google, International Business (NYSE:IBM) Machines, and Microsoft.

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