Windows 8: Microsoft Corporation (MSFT)’s Qwikster Moment

For example, the missing “Start” button is back, but without the cascading program menu you’re used to. Instead, the familiar button becomes just another way (I think there are about four different methods now) to bring up the new start screen — a brand-new Windows 8 feature with no equivalent in older systems.

Windows users might have appreciated a kinder, gentler approach to the new experience. Windows 8 may in fact be exactly what Microsoft needs in the long run as tablets and smartphones continue to replace full-fledged PC systems for most uses. But we’re missing an intermediate step: a hybrid model that lets you play around with the new stuff while falling back to the old way for serious work — like the current Netflix model, where DVD remains an option if you’re nervous about this newfangled streaming-video idea.

That’s why Microsoft Corporation (NASDAQ:MSFT) shares aren’t bouncing back, whereas Netflix shares rose like a phoenix from the ashes of a horrendous idea. Instead, Microsoft stock has largely paced right alongside its Dow Jones peers since the Windows 8 cat was let out of the bag. And I think investors are being too generous, because Microsoft isn’t even pretending to fix the root causes of this slowdown.

MSFT data by YCharts

Microsoft Corporation (NASDAQ:MSFT)’s trailing earnings are down 29% over the last year, and share prices are up 17% for no good reason. I don’t think that’s fair or sustainable.

The article Windows 8: Microsoft’s Qwikster Moment originally appeared on Fool.com and is written by Anders Bylund.

Fool contributor Anders Bylund owns shares of Netflix, but he holds no other position in any company mentioned. Check out Anders’ bio and holdings or follow him on Twitter and Google+. The Motley Fool owns shares of Netflix. Motley Fool newsletter services have recommended buying shares of Netflix and Microsoft. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

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