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Technology Stocks : How high will Microsoft fly?
MSFT 478.04-1.1%Jan 8 3:59 PM EST

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To: Ed Schultz who wrote (5196)2/20/1998 6:03:00 PM
From: Shibumi   of 74651
 
>>First, the 8% additional revenue could easily translate into a rise of 25% in profits (not 8% like you imply). This is a big deal.<<

In fact, I'd like to understand in what way the revenue wouldn't simply drop to the bottom line. Anyone???

>>But more importantly is the growth rate which goes a long way to determining the PE. You claim they had $13B in revenue in the past year with an additional $1B declared as unearned. The year before they had $10B in revenue. So, is the growth rate 30% or 40%? This is a VERY BIG deal.<<

And the earnings growth would be increased even more...right?
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