Microsoft Is a Better Investment Than Amazon: Blair

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Oct. 24 (Bloomberg) -- Wedge Partners' Brian Blair comments on today's earnings reports from Microsoft and Amazon. He speaks with Jon Erlichman on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Companies four wedge partners.

I was listening to the conference call where chief financial officer amy i would was talking about a "fantastic holiday season up ahead of the surface sales." do you buy that?

I do.

On the surface side, they're putting out some products that are affordable.

It's no longer $500 and up.

They are down to 300 and we are seeing the were numbers for those category so they have a reason to be bullish because it's more affordable in order to compete with some of the offerings, they need to have products that have higher numbers embarrassing a lot of interest in the xbox one.

A are seeing stronger pre-orders but i agree that they are very bullish on the december quarter.

That's the consumer side of the business but when it comes to the actual a guest pie for revenue for microsoft, it is the business that includes server product in microsoft office and they sound pretty optimistic because they are getting people to sign up for long-term commitments.

Is that your takeaway?

The main thing they said right out of the call as they are seeing stabilization in the pc business.

That's not something we've heard from the industry for a long time.

A lot of it is coming from the enterprise.

They are seeing enterprise customer sign up for multi-year deals but just to hear them say stabilization on the pc side is a big deal so they're obviously seeing strength in the server- side, strengthen the cloud offerings.

Let's compare microsoft and amazon.

They can come out with results and it might lose half $1 billion and investors get excited.

What's the deal?

Amazon does a great job conveying to the street that it's good to lose money near term for a longer-term payoff.

One thing they focused on with their call is that they are based on millions of new additions to the amazon prime video service.

It's great to hear them actually quantified what some of these investments are going towards.

They've been losing money.

They lost a little less, nine cents, then the street had estimated.

They are doing a great job of bringing in users to the prime platform and as well to the kindle devices even if there are some big costs causing them to lose money.

For those watching us on television, we were showing people stacking packages at the amazon warehouses.

What i found fascinating is this is a company that had 109,000 employees at the same time last year, they had roughly 81,000. this amazon workforce is exploding even though some of these workers are part-time.

They are moving into so many different areas of business.

I have amazon fresh where you can now order your groceries and they have added more fulfillment centers to get that two they prime shipping from anywhere in the country and they have also seen some international growth and they touched on that in their earnings release and they're making some headway in international markets right now.

That's a nascent area for them and where a lot of growth can come in the future.

Since you cover both microsoft and amazon, which do you think is a better investment?

Right now, microsoft.

A lot of people are very bearish about the nokia acquisition, i think it will be a great thing for them long-term to control the complete hardware to software experience.

There's just a lot of negative sentiment around that acquisition and i think it's going to be a smart about long- term to allow them to compete more closely with the likes of google who are now also doing their own hardware and samsung as well but that's a great acquisition and once it closes we get the details in the first quarter of 2014 for what it means but i think microsoft for that reason.

Thanks, brian blair, from new

This text has been automatically generated. It may not be 100% accurate.


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