How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 478.52

-2.8%

3:59 PM EST

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To: Frank Ellis Morris who wrote (39093)	3/6/2000 9:09:00 PM
From: johnd	Read Replies (4) of 74651

If I take a long term view, MSFT has traded between 50 PE and 81 trailing PE during the last 3 years. So with that in mind, it is not too bad where it is now i.e. 55 PE or so. What is a bit unusual is the relation ship of MSFT PE to other new economy stocks. See, Microsoft doesn't pump the market, it lets the market take care of itself with time. This is unlike SUNW, and others. Also the Windows2000 out there should demand rich premium. The DOJ affair may be the primary cause for the low end of PE. It could go back to 80 PE or 130 in no time if the cloud of uncertainity on DOJ is removed. The question is what is the uncetainity. For me there isn't much. i.e I know with high confidence that it will run for another 2-3 years. For wall street there is uncertainity till something else takesover news.

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