How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 472.22

-1.3%

Nov 21 9:30 AM EST

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To: John F. Dowd who wrote (33647)	11/10/1999 12:55:00 PM
From: johnd	Read Replies (2) of 74651

JFD, there is another benefit. Expedia was decreasing MSFT's annual earnings by about 20million dollars. Now that it is separate, at some point (when MSFT equity becomes less than 80% - possibly after a secondary offering from MSFT) these loss will be out of MSFT's income statement and will result in a slight increase in MSFT's EPS. Most importantly, wait for some more time, EXPE will command price line like valuations or 8Billion. Also, MSFT will keep monetizing these with a dozen other web properties. Imagine 10 such IPOs with 5 billion in MSFT's books for each. That would mean another 50 * 15 => 750 Billion in potential additional market cap to MSFT. This is why I am going gangbusters on the MSFT investments.

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