Hawkmoon,
Wow, where did you come from. Let's get you caught up, ok?
<< But another possibility as to why MSFT was able to beat revenues is likely due to aggressive PUT writing as a means of supporting their own stock >>
First, put writing does not support the stock. Second, the so called liability is minimal and doesn't even come into play unless the stock is below about where it is now, quite a while from now. And, if the stock is below the strike price they simply buy stock. This is something they do every year in order to grant options to the employees. Your put writing comments don't actually have anything to do with this quarter's results.
<< as opposed to increased sales in XP, since it isn't officially released until October, 2001. >>
The increased revenue is related to the release of Office XP which was last month. Obviously this has nothing to do with Win XP siince it hasn't launched. The main reason they had terrific revenue is that they are selling piles of software for servers and commercial customers that are buying Win 2000. This was launched a year ago, but is just now ramping up. And, it sells for quite a bit of money in comparison to the average consumer product like Win Me.
<< And I hardly believe, with the current slump in computer sales, that we're seeing increased sales of actual revenue from sales of software. That would simply defy simple logic. >>
Maybe you should study up a bit. First, PC sales didn't fall of a cliff, they are about what they were last year. Some PC manufacturers are actually selling more PCs this year than last. It doesn't matter if they are selling them cheaper in the midst of a price war, MSFT makes the same $ whether a PC retailer sells the boxes at $700 or $1200. It's the same license revenue to MSFT.
MSFT business is rock solid and their revenues could go up dramatically if PC sales rebounded in the future.
IMO,
Dave |
