Cheap Tech Stocks: Microsoft
While Microsoft (MSFT) is still transitioning to the post-PC age, there is a lot of potential left at this tech giant as it gets its sea legs in the smartphone and tablet space.
There’s still a long way to go for MSFT to catch up to other tech stocks in the mobile space, but the company is starting to make the right moves. The departure of long-time CEO Steve Ballmer will allow MSFT to make some changes in strategy necessary to evolve the business, and with $80 billion in cash and short-term investments this is a company with plenty of dry powder to make moves in the next year or so.
Throw in a merger with the hardware unit of Nokia (NOK) alongside the failing BlackBerry (BBRY) business, and it’s clear that Microsoft has a lot of opportunity to unlock mobile market share in 2014 and beyond. IDC recently predicted the Windows Phone market share of the smartphone market will jump to more than 10% of all smartphones by 2017 — up from roughly 2% in 2013.
A robust dividend gives investors plenty of insulation against short-term volatility, too.