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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: t2 who wrote (25374)	7/1/1999 1:47:00 PM
From: johnd	Read Replies (1) \| Respond to of 74651

Regarding Lehman's 130 target. I think it is quite good. As I said in earlier posting, I expect MSFT to report about 2.00 to 2.10 in EPS in current FY2000. Can't really predict what the PE range would be, but 55 - 80 may be reasonable. So a range of 110 - 168 with about 139 as mid point is a reasonable target. This quarter could be very interesting. I want to be open for MSFT to report some out of this world revenues, like 6 Billion. The reason is the pentup demand for Office2000 with the new guidelines that forces MSFT to recognize 80% of revenues in current quarter. A breakdown of 6 Billion could look like below: Apps & Tools: 3.4 Platforms : 2.2 IMG : 0.4 Did you guys notice the 9month revenues increased to 14 Billion? FY99 could be a 20Billion revenue year. What exactly happened with accounting change? Anyone know? For example reported revenues increased by ~700 million for the 9 months. But expenses increased by exact same amount. (1) When MSFT reported increased revenues for the 9 months, did the unearned revenues go down? (2) How did the cost go up by exactly same amount keeping reported EPS same and not higher? Anyone who knows, please explain.