One of the main problems that has been facing Microsoft (MSFT) lately is that young tech interns are simply not interested in the aging company. However, it seems that Microsoft is on its way back to being “cool“.
If you listen to what young tech interns have to say about Microsoft you will notice that the trend leans towards Microsoft seeming “cool” again. This is a big turnaround for the company that has recently been seen as more of a bureaucratic bore than a real player in the industry, and it certainly has not been posing much of a threat to some of its bigger competitors. In short, the tech stock has almost been dying out, if not in reality than at the very least in our minds. The refreshed interest in the company as seen from tomorrow’s leaders in the market is a very positive note for the company.
In my opinion, the reason why more and more young players in the game are interested in Microsoft is because it is one of the tech companies that compete at virtually every level in the tech market. This is nothing new, but what is new is the fact that all of its products are starting to come together. This synergy is exciting and many young geniuses can see the advantages and future potential. As many young interns state, Microsoft is in the process of revolutionizing the world as we know it, something that cannot be said for very many tech stocks.
If we look at some of the company’s main competitors, namely Google (GOOG) and Facebook (FB), we can see that they are already starting to flounder. The main problem for both is the way in which they deal with issues surrounding privacy. They are also heavily reliant on advertising rather than on their own attributes as tech stocks. While Microsoft has received the label “cool” from a number of interns, Facebook and Google have been described as “creepy” by those same young leaders of tomorrow. Interns want to make a difference to the world and feel that what they are doing is changing things. At Facebook and Google, where ads are the main source of income, there is simply not as much opportunity to achieve this goal.
The flocking of interns does not translate directly to stock results or a larger profit margin, we know this. But what it does mean is that brighter minds will be brought in to work for Microsoft and with brighter minds comes better technologies. Microsoft’s image alteration will allow it to keep great tech products coming for years and decades to come.
We must remember however that Microsoft has also had its share of anti-trust cases in the past. Most interns are too young to remember, but it is something that investors should keep in mind when following the trends inherent in this stock and its competitors.
That being sad, Google is still listed as the best place to work as an intern if you are trying to get into the technology game. Microsoft holds a close second place, however, and I believe that in the very near future it will be at the top once more, especially if you consider recent developments from Google.
Surprisingly enough, the ever strong competitor Google may be in some serious trouble. We are all familiar with the anti-trust cases that are currently being waged against the company which has been accused of using its dominance in the search engine market to promote its own sites over those of its competitors, as well as for breaching the privacy of its users. Often a large company such as this one can survive allegations such as these due simply to its strength. However, I am not sure that this breach of trust will be so easily forgiven. Investors need to watch the situation closely.
Competitor Oracle (ORCL) is a stock that, by and large, is doing fairly well. However the company has to face a new challenge: how can it shift from its current technological base to cloud technology without becoming obsolete? Oracle has always been a company that has understood that knowledge alone is not enough, but that you also have to know how to analyze and use that knowledge in order to make a difference. Hopefully this is a strategy that will help it to survive the transition. Betting against Oracle is not something that I would recommend.
Competitor VMware (VMW), on the other hand, seems to have quite a comprehensive strategy for moving into the realm of cloud computing. Essentially the company has launched what it calls the Consulting and Integration Partner Program (CIPP) through which it will “leverage the professional consulting and services of VMware’s channel network in the advocacy, design, implementation and maintenance of private clouds build on the VMware portfolio”. Cloud computing is the future for tech stocks such as this one, which makes VMWare’s new workings a good move.
Amazon.com (AMZN) has also picked up on the importance of the cloud. Recently is announced a new app for iPhone’s and the iPod Touch, which will allow customers to stream or download music stored in Cloud Player. The app, which is called Amazon Cloud Player App, additionally allows customers to play music which they have already stored in their devices. They can also create and manage playlists thereby personalizing their music experience. This puts Amazon in the lead in this regard as the new app is the most widely compatible cloud playback solution that is currently available.
Microsoft faces the danger of dying out in the face of new competition. But I feel that given the latest trends in the company and the marked increase in young tech interns who are interested in getting a position at Microsoft, things are most likely going to look even brighter for the company in the very near future. The company is experiencing a revival and, as its competitors flounder, it seems that it will soon return to is its rightful place at the head of the tech stock market.