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Investor's Outlook: Tablet Market

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Microsoft Corporation (NASDAQ: MSFT) Microsoft's Windows 8 marketplace impact was anything but revolutionary. Windows 8's agitated many PC users. The high cost of many Microsoft systems made them a tough sell in economic conditions. The numbers could change as the economy is still in recovery from the crisis.

 

The disappointing PC sales indicated weak demand for its Windows 8 operating system that just hit the market over the fall. The stock traded down 4.4% to close at $28.93. IDC reported that PC sales slid nearly 14% in the first quarter.  The company launched its first touch-based operating system, Windows 8 late last year. But Windows 8 could not provide a positive boost to the PC market. Microsoft is way behind its competitors. The company will have to explore ways to recover from the current situation.

 

The company has revenues is of $21.46 billion in the second quarter of fiscal 2013. Microsoft has been a large competitor to Oracle. Microsoft’s growth strategy is to leverage big data technologies from the desktop to the cloud. The company also has expectations for democratization using big data.

 

In the last few years, Microsoft has revamped its analytics, embraced big data and Hadoop. Microsoft's current investments are supported by its strong balance sheet improving market share gains. Microsoft does have emerging markets strength, continued technology deployment at data centers and growth in cloud computing.

 

Adobe Systems Incorporated (NASDAQ: ADBE) The fact that Adobe is more ubiquitous today than Microsoft makes investors believe that Adobe will end up being the appropriate digital marketing platform.  For customers who prefer Microsoft, price may be acceptable to running Windows applications however they may be challenged to deliver applications of the future. Adobe is aiming at the next generation of productivity applications, developing the trends that will matter most five or ten years from now.

 

Average volume has been 3.6 million shares over the past 30 days. Adobe Systems has a market cap of $21.98 billion and is part of the technology sector and computer software & services industry. The company has a P/E ratio of 30.4, above the S&P 500 P/E ratio of 17.7.

Staples (Nasdaq: SPLS) The Windows Store app for Staples.com provides customers with access to Staples Rewards and features tools that make it easier for small businesses to research and shop for everything they need for their business or home office. The Staples Windows Store app also works in conjunction with Staples other e-commerce properties, allowing customers to view or add items to their cart on the Windows Store app, the Staples smartphone app, the mobile website, the tablet site or Staples.com, making it easy for them to shop whenever and however it’s convenient for them.

 

The Staples Windows Store app supports both touch and more traditional input methods, making the app available to users on all the different form factors that run Windows 8. The app is available for free download in the Windows Store and will serve tablets, laptops and desktop PCs. The average volume for Staples has been 8.8 million shares per day over the past 30 days. Staples has a market cap of $10.35 billion and is part of the services sector and specialty retail industry.

 

For investors, it is anticipated for price expectations to fall this year. It makes sense not to drop prices much farther as they are already at some of the lowest rates in industry. Reports have even stated the use of plastic for minimizing costs. I am optimistic for tablets dominated the market, this will only come with these type of price adjustments to compete and perfecting the device, features.

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Markets Trading Ideas

 

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