How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 476.67

+0.4%

3:25 PM EST

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To: Gary105 who wrote (3452)	10/18/1997 9:56:00 PM
From: MonsieurGonzo	of 74651

Gary; RE:"I do not believe market will tank if msft tanks..." ...should MSFT fail to meet First Call estimates, ie., "tanks", rather than merely "corrects" -10% from ~140 to ~125... (1) it will stabilize at an (historical) P/E around 30; (2) it most certainly will cause all the other (high P/E) TechStocks to be re-valued, as well. ...Further, if such a "surprise" by MSFT is amplified by an earnings "surprise" shortfall by IBM, Tuesday will be a general market panic. Fortunately for all of us, this will not happen: MSFT will make or, miss/exceed estimates by a small amount. If it starts to go down, there are still lots of buyers around 125 to keep MSFT supported at no more than -10% loss of valuation. But "if MSFT tanks..." is not something to be trivialized :-\| -Steve

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