How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 490.60

+1.6%

2:20 PM EST

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To: Dave who wrote (56421)	3/2/2001 12:48:20 AM
From: David Howe	of 74651

<< But that will represent a declining revenue base because (1) Microsoft's prices (how many hundreds of dollars is Office now?) will have to go down to compete with the upstarts >> I'm not sure who the upstarts are, but there is no way that they will lower prices to compete with whoever they are. There are no serious challenges to their Office product. IMO, there are less challenges to their Office product now than there were a couple of years ago. There are reasons why growth in this area has slowed, but I don't think it's because of competition. << (2) the slowing economy will shrink the overall market. >> True, The bet here is that the slowing economy will eventually recover. The market is currently attempting to adjust share prices for the fact we are in a recession. Assuming the economy gets back on track in a year or two, share prices will move higher as a result. If the economy never recovers, than my argument loses and yours wins. << And whatever the outcome, the antitrust case is not going to help. >> An awful outcome was factored in until recently. There's still a good deal of uncertainty built into the share price. My bet is that the appeals court will rule on MSFT's side for the most part (ie. no breakup). The fairly positive result and the lifted uncertainty will help the share price, IMO. Dave

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