Microsoft Momentum
Furthermore, as more computing services move to the cloud, smartphone specs have become less important. A smartphone from 3-4 years ago can still run most of the popular apps of today. The writing is on the wall and Apple Inc. (NASDAQ:AAPL) has even introduced a yearly iPhone upgrade program in certain regions as a way of propping up their smartphone revenue figures. It doesn’t help that there is growing sentiment of stagnation towards Apple.
In fact, in press and investor circles, there is already a look towards the “iPhone 8” because the iPhone 7 series was so underwhelming. A removal of the headphone jack and a stubbornness to change the visual aesthetic left a bitter taste in consumer’s mouths. In an act of “divine intervention” Samsung’s problems with the Galaxy Note 7’s burnings issues has helped the sales of the iPhone 7. Things are likely to have been a lot different if that situation hadn’t occurred.
Also Read: An Option Strategy To Play Apple Inc. (AAPL) Earnings
Microsoft Corporation (NASDAQ:MSFT) has also been working hard in AR, and the Holo Lens continues to turn heads. In the near future, this is likely to be used in enterprise, education and the defense industry. The strong possibility of long-term growth in AR and cloud computing is what is making top investors excited. This is exemplified by the fact that a drop in phone revenue hasn’t affected the stock. In fact, Microsoft stock has strongly outperformed (1) the Computer Software industry. This shows the value Microsoft holds.
Moving forward, Microsoft’s $26 billion acquisition of Linkedin is likely to play a big role with regard to growth. It enables them to tap into a growing professional social network. Notably, Linkedin also owns Lynda, and this enables Microsoft to tap into the rapidly growing professional education market. It is highly plausible that Lynda would become baked into Microsoft’s enterprise-grade software, enabling managers to train their staff at a lower cost.
Conclusion
In conclusion, Microsoft Corporation (NASDAQ:MSFT) is making all the right moves at the right time. As compared to Apple, Microsoft is tapping into some very lucrative growth drivers. Cloud revenue is doubling year-on-year and their AR offering has limitless possibilities. Sure, Apple is likely to enjoy a strong Q4 2016 due to Christmas sales; however, the days of record-breaking iPhone sales are numbered. Mac and iPad sales are already declining.
The fact is Apple needs a forward focused growth driver, and fast. Microsoft has already struck them and has the stronger momentum at this moment in time. It is worth adding MSFT to your portfolio in order to benefit from this momentum.
Looking for great technology stocks? Check out our tech stock picks (2), which have beaten the NASDAQ by over 111%.
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The article Microsoft Corporation: Is MSFT Stock A Better Buy Than AAPL Stock Now? originally appeared on amigobulls.com. Watch our analysis video on MSFT (3)
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Additional Links:
(1) https://www.zacks.com/stocks/industry-rank/industry/computer-software-44
(2) http://amigobulls.com/stocks-to-buy/top-tech-stocks/?ref=il&ref=im
