Saturday, October 20, 2012

Google Inc (NASDAQ:GOOG) and Microsoft Corporation (NASDAQ:MSFT) Try Hard to Expand Product Offerings

Google Inc(NASDAQ:GOOG) and Microsoft Corporation(NASDAQ:MSFT), despite having more than $100 billion on their rosters, have turned in earnings that were far off from analyst expectations. Both firms have been looking to reinvent themselves for sometime, to extend their offerings, even if it means lower earnings for some time. But the problem is that investors are not too convinced if both can effectively state what the “next big thing” is.
Mobility can help Google to expand its reach, says Jon Najarian of optionMONSTER. Accidental clicking of ads by smartphone users visibly annoys them, so Google should take advantage of this and present ads in such a way that users click on it due to the interest factor. Furthermore, the cost-per-click should be used in a more meaningful way to earn some moolah.
Microsoft is also planning a facelift of sorts by launching a re-designed online store, Surface tablets to take on iPdas, streaming music, and of course the Windows 8 operating system. Even so, the company still enjoys a healthy cash flow from IT departments all over the world.
The Windows 8 has taken two years to come to the forefront due to slow work pace and also the fact that Microsoft can’t take chances on a product that will shape its future. Early reviews of the system look good and if the product is a success, then Microsoft will be able to take on Apple, which almost accidentally entered the corporate market.
Google and Microsoft do have resources to counter any mistakes, but they had better buck up as the industry is changing at a rapid rate. Microsoft’s saving grace is Office and Google is involved in a cut-throat brawl when it comes to mobile advertising. A shareholder of Intel stated that while the companies are not going to be wiped out, dropping lower and lower is not a good sign either.

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