Analysts turn positive on Microsoft, lose confidence in Apple

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Microsoft is in the process of surprising analysts by showing good performance in the stock market over the last few weeks, with its share price rising 3% over the last few days alone.

This contrasts with Apple, who’s share price hit a 6 month low recently and recently closed below $600 for the first time since August.

While the analysts are still strong believers in the “Post-PC” future they do not think this is necessarily a barrier to the future existence of the company.

“I think Microsoft is diversified enough,” Drakon Capital’s Guy Adami said. “You’re not going to get buried on the downside.”

“I think the most encouraging aspect of what’s happened in the market over the last week is the fact that we lost the leaders — Google Apple and Amazon — but in their place we’ve seen Intel , Microsoft. We saw the industrials very strong today, so we’ve seen rotation that hasn’t hurt the market even as the leaders have gotten hit, which is a really positive sign.”

Simon Baker of Baker Avenue Asset Management said Microsoft had potential following the release of Windows 8.

“The feedback is really positive. They got 400,000 users (developers),” he said, adding that “1.5 million people a day are upgrading.”

The analysts saw Microsoft’s share’s rising above $40 on the upside, taking it away from the doldrums of between $20 and $30 where it has been languishing for a long time.

Do our readers think Microsoft has its mojo back and that traders are noticing? Let us know below.

Read more at CNBC here.

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  • http://twitter.com/EMPOLLA Mitchell

    All those iPads those guys had in portrait mode sitting on docks…. It’s hilarious to me. iPads doing work along with the docks; I guess me sitting here with my surface makes that world funny.

    • http://twitter.com/counterblow the person

      wow yeah….that looks really stupid. Surface looks more and more logical every day.

  • JRV

    MS has–by far–the most compelling offering for the near term in Win 8/XBox.Next/WP8, with the “3-screen” strategy. But this is just the beginning, as described in what I think is a very insightful article: http://www.zdnet.com/windows-8-its-only-one-part-of-microsofts-brave-new-world-7000006735/

  • just

    MS woke up from a deep sleep realizing they need to compete again.

  • mono

    Is this a typo? MSFT rose more than 3% in just one day. And 5% in last 2 days. Not just 3% in last few days ad mentioned above

  • Asgardi

    I think some people who like to talk about app numbers are waking up. Counting RT out, Windows has millions of apps, not hundreds of thousands. Wait, not apps – applications. Even if they are not meant for touch, they are still usable and working. This was a very big deal when Apple made people move from iPhone to iPad (even if the UX was complete crap) and it will be a very big deal when business users are moving from desktop to mobile in Windows.

  • Bugbog

    Flip-Floppers!

    • PoohGQ

      “..even considering their relative consumer ‘unpopularity’…”
      I somewhat disagree with this statement! Windows laptops and PCs still outsell the MacOS products by very much despite Iphone’s and Ipad’s penetration. Xbox has outsold Sony’s Playstation consistently.

      The things consumers hate, such as IE6, are not totally MS’s doing. I still find folks still using a very outdated browser while the little gold shield in the task keeps alerting them to install updates. Others have had the misfortune of being told by a techie relative to abandon IE for other browsers but never told them that they also have to have an updated virus protection software.

      MS has been undervalued for a long time now but allowed the smart ones to accumulate more stock (ME!). With Apple’s IPad on the premium side and Android tablets on the low end, MS Surface & other Windows RT tablet are bound to hold the mid-range consumer/student and small business, and even corporates. Now, this doesn’t even to mention the new form factors that might be a major hit this holiday season, and laptops with/without touch screens.

      Expect to see shares north of 45 within 8 – 12 months! HEY..don’t quote me or buy shares based on this uneducated predication.. :)

      • Bugbog

        I concur. I suppose I could have qualified my statement with a proper explanation (although that wouldn’t have fit in with the general theme of my comment).

        There is an element of unpopularity with Microsoft’s main O.S. products that are latent (i.e. a carry over from 10 years back), and also due to meme spreading by rival companies that target a younger generation. This despite the fact that a lot of those that regularly bad-mouth the products regularly use them. (Case in point; my brother that has an iPhone (3 iterations now) and an iPad 2, despises Microsoft. When pressed as to why then he still uses a Windows desktop? Err…Mac books are too expensive!). Blind, unreasoning hatred?!!

        This means that, generally speaking, Microsoft products (those that are Windows branded) have to fight an uphill battle, against being deemed as cheap, low-cost, unreliable, poorly designed, unergonomical, and just generally uncool.

        But with Microsoft’s current “re-imagining” this is likely to soon change.

  • John

    The asian woman is so annoying and sound like Apple isheep or iSlu…

    • inyourbase

      sexist much?? you are a lovely human being aren’t you?

  • brodelby

    2:26 – “They gave out the tablets, they gave out the iPhones…”.
    *Facepalm*

    • http://twitter.com/djcrumbley Daniel Crumbley

      I know, right!! Its sad

  • Guest

    The PC is declining?! I mean I believe computing is moving towards tablets and the market will change but what do they mean the secular PC is declining? This is what seems to always happen to Apple fans. They start living in an apple world and think that theres nothing else

  • http://twitter.com/djcrumbley Daniel Crumbley

    The PC is declining?! I mean I believe computing is moving towards tablets and the market will change but what do they mean the secular PC is declining? This is what seems to always happen to Apple fans. They start living in an apple world and think that theres nothing else AND THAT THE WHOLE WORLD HAS AND WILL ONLY USE MACS OR SOMETHING. They sound repulsively ignorant to me.
    Also, the Ipads do seem very disfunctional while the Surface would be much more useful.