Microsoft Windows proves its not dead

Microsoft gets kicked around as the unloved stepchild of tech. As everyone touts the evolution of consumer and business research into a "post-PC" world, you can’t help nevertheless wonder how the company will stay on top.

The reasons included a revamped line of legacy software, as then as some impressive growth in newer business ventures that show Microsoft is in actual fact evolving beyond its bread-and-butter Windows operating system.

The details

Here are the details: Microsoft's quarterly revenue was up 6% compared with the year-ago period's $17.41 billion, during operating income increased by 12% to $6.37 billion. Gains of between 4% and 14% were reported in most divisions, including the mainstay Windows business.

Microsoft is bringing a series of highly anticipated new products to market this year, including Windows 8 for PCs and tablets. The move is meant to integrate mobile and desktop experiences, something that could connect big with many folks. More importantly, it could help MSFT go post-PC without abandoning its dominance in the laptop and desktop markets. There's as well a new version of its flagship Office software suite, with cloud computing features.

So is Microsoft back in the saddle and worth investing in? Perhaps. MSFT is up about 2% in the past 30 days -- outperforming not just the broader Dow Jones however also tech darling Apple. It's no surprise StockPickr founder James Altucher has enough confidence in it to make MSFT his pick for InvestorPlace's 10 Best Stocks for 2012 contest.

The all-clear just

But let's not sound the all-clear just but. In spite of some decent revenues and nice software launches on the calendar, Microsoft's Entertainment & Devices division continues to struggle. Although the Microsoft Xbox 360 remains the top-selling console in the U.S. for a 15th consecutive month, revenue plummeted 16% as the company failed to follow up on the success of the Kinect motion controller. As well, the Windows Phone remains a huge disappointment -- especially when you look at the dismal results hardware partner Nokia just reported.

Still, it's hard to argue against the dominance Microsoft currently enjoys, and it's encouraging to see it is looking beyond Windows to come up with new revenue streams. Wall Street truly seems to think some of the pessimism is overblown and has driven shares up an impressive 25% year to date when you include Friday's pop -- easily three times the Dow Jones' gains. And now Microsoft stock is at a new 52-week high.