Shares of Microsoft (MSFT) currently trade for $24. This is nothing new as the stock has traded at this price many times since the 90’s. The company has been able to grow earnings at an 11% clip and is trading right in line with its future earnings growth. Despite these solid results, the stock has been unable to rise at all. The stock is down 12% over the past decade. Recently, an analyst at Goldman Sachs and a reporter at Forbes have recently called for the breakup of Microsoft. While this is not a bad idea; I think that a better solution for Microsoft would be to acquire Research in Motion (RIMM).
Here are two moves that Microsoft can make to become more competitive.