I have avoided writing about tech stocks like Apple (AAPL) or Microsoft (MSFT) since I took the plunge as a contributor on Seeking Alpha. Maybe it's because I remember the dot.com crash, or maybe it's because my strengths lie elsewhere. But, in the interests of fairness, I'll be tracking both stocks as part of my series following Fortune Magazine's Top 10 Stocks for 2012.
Microsoft is a worldwide leader in software, services and solutions that seeks to help people and businesses realize their full potential. It has five key business divisions; Windows and Windows Live, Server and Tools, Microsoft Business Division, Online Services Division, and Entertainment and Devices Division. In terms of its strategy for the future, you can view the company's goals and aims here, or read the following detailed interview with CEO Steve Ballmer, published by Bloomberg Magazine.
MSFT earnings release for its fiscal Q2 2012 states that the company achieved quarterly revenue of $20.9 Billion, an increase of 5% above the same reporting period last year - not too shabby a result given market conditions. The stock today eclipsed its 52 week high, reaching $31.33 at close of trade. Its previous 52 week high was $30.80, and its 52 week low is $23.65, which can be seen in the two year performance graph below:
Microsoft 2 Year Performance
Key financials for MSFT at present are as follows:
- EPS 2.75
- PE 10.90
- Div Rate 0.80
- Yield 2.66
- Market Cap $262.5 Billion
While I will be following the stock and its performance as part of the Fortune Magazine Top 10 Stocks 2012 series, readers should consider whether the stock is about to test uncharted waters for the first time in a long time. The stock's previous bottoms were $23.65 in June 2011, and $23.11 in June 2010 (I expect management loves it when June rolls around each year...) Its previous highs were $30.80 in February 2012, $31.39 in April 2010, and $37.06 in October 2007 (as seen below):
Microsoft 5 Year Performance
One thing for certain though, is that MSFT is for want of a better analogy, like butter on bread -- you've got to have it. And you're either MSFT or Mac focused; in my case I have been a MSFT user since I got my first computer in 1992, an IBM 286sx25 (with I don't remember how small a hard drive...) I see the rivalry each night at home; I plug away on my ASUS Netbook with MSFT software (I've never used anything else) while my wife surfs the web on her AAPL iPad. Both have their uses, both have their drawbacks. But with the passing of Steve Jobs, nothing is guaranteed, and while AAPL is pushing ahead in current markets, that's not to say that MSFT won't punch above its weight this year and deliver a better % return than Apple. Time will tell, and I, like everyone will be watching.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Additional disclosure: This advice is general advice only. You should seek professional independent financial advice prior to making any investments of your own.
