There's your problem right there. Where's the growth? Microsoft is not likely to increase its share or profit in those markets. Desktop Windows and Office are static, new purchases mostly replacing old ones. The Kin was a miserable failure in the mobile arena. Nobody but the fanbois are excited over Win7 Phone with the raving success of Android and iOS. It's an also-ran unless it can be vastly better than the competition (yeah, right), and Microsoft has no monopoly power to leverage an inferior product there, and can't even leverage corporate dominance since RIM owns that. The XBox recently turned profitable after billions in loss leaders, but already lost the #1 console spot with the PS3 just about caught up already.
We've seen massive, sustained Apple growth with constant successful branching out into new markets over the last several years. Seven years from nothing to the #1 music retailer in the US for the iTunes store. From nothing to almost half the worldwide cell phone profit for the iPhone in three years. From nothing in a market at all to millions of high-margin iPads sold. The high-margin computer division is growing faster than the other OEMs (which are mostly low-margin), securing 91% of the highly profitable premium computer market in the US. That's a reason to expect future growth and highly value a stock.
What about Microsoft? Being relegated to bit player status in the mobile market, where do you see Microsoft growing in order to justify the stock price? Do you think Microsoft can pressure HTC to drop Android in order to get back into the market?
See earlier links in this thread showing the PC market growing 28%+ per year. Microsoft's holding their share, and that means 28% annual growth just maintaining their share.
where do you see Microsoft growing in order to justify the stock price?
More revenue, more profits, higher margins, billions in cash on hand, a strong dividend - you know, financials that most would consider attractive. Not bubble-driven.