While Apple (AAPL) and Google (GOOG) have been getting many of the headlines, Microsoft (MSFT) has been quietly innovating and adapting product offerings. Microsoft has reentered the mobile market, is a competitor in the cloud and makes one of the most popular video gaming systems.
Microsoft is expanding into mobile. The firm partnered with ARM Holdings (ARMH) to employ its chip technology in its upcoming release of Windows 8 - a version that will be scalable to not only traditional laptops and desktops, but also to tablet and smart-phone devices, as well.
Another key consideration is its cloud initiative called Azure - one that is designed to be open and flexible while enabling users to build, deploy, as well as manage applications across global networks. Azure is unique and is outpacing products from notable cloud titans such as Oracle (ORCL) and VMware (VMW).
Azure's easy integration of public cloud applications to existing enterprises while also enabling networks to build and run highly available applications - all of this without focusing on infrastructure. Microsoft is certain to leverage its existing enterprise footprint by virtue of its lead in software and server markets for both consumers as well as corporate environments. Additionally, Microsoft is releasing new versions of Office and Server.
Recently, Microsoft announced quarterly revenue that was up 6 percent from the prior year period and operating income up 12 percent from the prior year period. Revenue from the Server & Tools business increased 14 percent from the prior year period. The firm revised down its guidance for operating expenses for the full year ending June 30, 2012.
Microsoft operates a high margin, low debt-to-equity enterprise. Liquidity and solvency aren't concerns for investors. Shares of Microsoft are trading above the rising 50-day moving average. Shares are in the markup phase, which precedes the distribution phase when investors decrease their position size in a stock.
Although Microsoft's valuations may be approaching a short-term peak, the long-term prospects for the company remain bright. Investors should remain bullish on Microsoft.