1999 will be a split year for many big cap stocks, no exception for Microsoft. It is to the benefit of Microsoft to split the stock , since at lower price , many investors will jump in , and more people hold the stock. This will be good for Microsoft to fight the DOJ, people's power. This is the same strategy Clinton is taking. Also as the stock split, it will sharply reduce the financial burden on the new employee option issued after the split. As to the limit of Microsoft's market cap, well sky is the limit. No one said the cap limit should be $500B , it all depends on the size of the market and the potential of its products. Twenty years ago, people thought Dow of 1000 is too high , and now DOW almost hit 10000. Twenty years ago , people thought market CAP of
$10B was unthinkable, pretty soon , we will see market cap of $2000 B is pretty common. This is just the principal of economics. As the population grow, the market grow, the market cap grows together . |
