How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 486.98

-1.4%

3:59 PM EST

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To: t2 who wrote (23079)	5/21/1999 2:48:00 PM
From: Jim Lamb	Read Replies (1) of 74651

t2000,nice article.Here is a quick bull MSFT read from the latest Fortune mag. Microsoft (MSFT) is not usually thought of as a Net stock. But the software giant is certainly benefiting from the Internet revolution. Despite the hoopla over network computers (remember them?) and Internet appliances, PCs are still the world's main gateway to the Net, and over 90% of PCs use Microsoft's operating system. Indeed, for every PC sold, Microsoft collects roughly $55--just for the operating system. That doesn't include fees for applications like Powerpoint or Microsoft Word. Microsoft's recent alliance with AT&T and its investment in cable giant Comcast make it almost certain that the software colossus will play a role in broadband. AT&T's support should also give Microsoft's Windows CE operating system entree into millions of set-top boxes and steer traffic to its MSN portal. Says CS First Boston's Mike Kwatinetz: "The long-run payoff from these deals, especially the AT&T investment, will be huge." Things look equally bright in the short term. Kwatinetz notes that Microsoft is just beginning its most lucrative wave of product launches ever, with Windows 2000 and Office 2000 expected to be major hits. The introduction of Windows 2000 (formerly known as Windows NT 5.0) in late 1999 or early 2000 is especially notable, since it's likely to help Microsoft grab a big chunk of the $60 billion to $80 billion a year market for heavy-duty enterprise software. What of that antitrust trial you've heard so much about? Well, since it started last fall, Microsoft shares are up 47%. Few analysts expect it to have any long-term impact on earnings. "You have to own this company," says Kwatinetz. "This is about as predictable a play as you can find anywhere in the market."

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