Hard to quantify, although I think Wall Street was totally taken off guard by the magnitude of the increase in spending. As you know, the Street doesn't like surprises.
There's absolutely no question that MSFT is about the bluest of the blue chips out there, its financials are a thing of beauty.
With limited or nil growth, it can also be argued that a PE of 20+ is not merited, and the stock goes lower.
One other argument that can be made is that maybe MSFT is managing the forward guidance to the low end (lowballing), setting the bar real low, enhancing the chance for a positive surprise. I seem to recall the company doing that on several occasions.
I have not been a buyer, it is on my watch list.
I did buy back in to RCL today. A day after a downgrade, this company surprised to the upside; perhaps as result of RCL doing better than competitors in the Caribbean market, which has been perceived to be softening. Onboard yields also showed solid improvement. The kicker for me is that the Freedom of the Seas (the worlds largest cruise ship) will launch in about a month, and I think there will be considerable hoopla made of that in the media. |
