How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 487.71

-0.1%

Dec 26 9:30 AM EST

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To: Tony Viola who wrote (35970)	1/3/2000 9:32:00 PM
From: ed	Read Replies (1) of 74651

What I am saying is Intel had higher cost , i.e R&D + Manufacturing ( Fabs + materials, + labor + engineering) + RMA ...etc.That is why the hardware companies should have lower PE comparing with software companies. What is more , Intel's business model is more risky , say, you invested 4 Billion dollar for a 12" 0.18um fab, what if you hit a low business cycle when the fab is ready for production ? You never know !!!The cost for manufacturing is billions of dollars, while the cost of manufacturing for Microsoft are just copy and packaging !!!! That is quite a big difference in term of profit margin !!!! That is why I never buy Intel !!!

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