TO ALL: This quarter just shows that Microsoft is returning to its old ways, beating estimates by 1 or 2 cents ,,, historically, when it does that, the street gives it a forward PE of 25-30 ... now, I don't know if analysts will start revising estimates soon, but based on current First Call estimates for 1998 of 3.20 (3.18 before this 2 cent upside), forward PE of 25 to 30 gives it a stock price of 80 to 96.
A couple of quarters ago, Microsoft had a very big upside surprise of 15 cents, and before that, 6 cents. Now, the party isn't going on forever, and looks like the party goers are already at the exit door. And the Justice Department had just issued out invitations to another party (the bear party). Will be very interesting tomorrow.
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