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

To: t2 who wrote (30574)	10/12/1999 5:32:00 PM
From: Bill Holtzman	Respond to of 74651

Saw MSFT at 92 afterhours.<eom>

To: t2 who wrote (30574)	10/12/1999 5:53:00 PM
From: taxman	Read Replies (2) \| Respond to of 74651

"why would a MSFT or Dell selloff on this news" good point. regards Intel (INTC) 76 11/16: Full disclosure first -- we have been pessimistic about Intel's prospects for the better part of two years, arguing that the tech revolution has transitioned from the microprocessor to telecommunications. In general, we have been right, but in recent months, Intel has performed much better than we had expected. That period might be coming to an end. Intel is trading off 5 points after reporting Q3 earnings of $0.55 versus estimates of $0.57. Revenues were $7.33 bln, just a touch better than expectations. The disappointment in Q3 came in gross margins, which were unchanged at 59% in Q3 despite Intel's expectation of higher margins for the quarter. Average selling prices for microprocessors fell once again in Q3, quite likely due to the ongoing shift to the "value" segment of the PC market, which is a lower margin business for Intel. As always, the future is more important than the past, but the news for the future wasn't that encouraging. Intel said that Q4 will be seasonably strong, adding only that revenues will be higher than Q3. That will not offer much comfort to the market, as Q4 revenues typically rise more than 10% relative to Q3 due to strong holiday PC sales (great news -- Christmas will be in December again this year!). The market will also have less tolerance for this type of bad news now/good news soon scenario, as Intel missed its number in Q2 as well, and similarly hinted at better times ahead. A quick work-up on the Q4 numbers using Intel's guidance indicates that the current $0.65 First Call consensus will probably come down a few cents. The stock has already shed 5 points to 71 11/16 on this report, and can be expected to retreat further into the 60s over the near term. The technology revolution continues, but Intel is no longer at its core. - GJ Copyright ¸ 1999 Briefing.com, Inc.