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

To: Frank Ellis Morris who wrote (33295)	11/8/1999 6:46:00 PM
From: taxman	Respond to of 74651

based on yahoo price advance, looks like msn internet network will be closed down. regards Shares of Red Hat Inc., Sun Microsystems Inc. and other software makers rose after Microsoft Corp. was declared a monopoly, sparking optimism that rivals could benefit if it loses its industry dominance. Red Hat, which distributes a free computer operating system that competes with Microsoft's Windows, rose 18 1/16 to 104. Sun, creator of the Java programming language, rose 2 3/16 to a record 111 7/8. Microsoft, the world's largest software maker, fell 1 5/8 to 89 15/16. U.S. District Judge Thomas Penfield Jackson on Friday said that Microsoft ``stifled innovation' by using its dominance over personal-computer operating systems to quash rivals. Companies that compete with Microsoft, such as Sun, Novell Inc. and Oracle Corp., will have a better chance of winning customers and partnerships as a result of Microsoft's travails. ``If Microsoft gets reined in, (Sun's) ability to compete is enhanced,' said Art Russell, an Edward D. Jones & Co. analyst in St. Louis who rates Sun shares a ``buy.' ``They are a beneficiary of anything that limits Microsoft.' Apple Computer Apple Computer Inc., a longtime Microsoft rival, rose 8 1/16 to a record 96 3/8. Apple, based in Cupertino, California, makes one of the few computer operating systems that compete with Windows. Its machines have been picking up market share since its introduction of the iMac PC last year. The company's QuickTime software also competes with Microsoft's products. Other Microsoft rivals in the markets for software and Internet services and content rose. Oracle, the world's largest database-software maker, rose 3/4 to 59 7/16. Provo, Utah-based Novell, whose software links computers, rose 15/16 to 21 3/16. RealNetworks Inc., the top maker of software to broadcast video and sound over the Internet, rose 4 to 139. Be Inc., the maker of a rival computer platform called the Be operating system, rose 2 11/16 to 6 1/2. Liberate Technologies Inc., which makes software for set-top boxes and other Internet devices, rose 12 5/8 to 77 1/2. Yahoo! Inc. rose 13 3/4 to 197 3/16. Dulles, Virginia-based America Online Inc. rose 4 3/8 to 149 7/8. Both Santa Clara, California-based Yahoo and AOL compete with Microsoft's MSN Internet network for Internet users, while AOL competes with Microsoft's Internet access service. Possible Breakup Assistant U.S. Attorney General Joel Klein said yesterday that breaking up Microsoft is among the remedies being considered by the Justice Department in its antitrust case to promote competition and consumer choice. Microsoft's situation is essentially unchanged, an analyst said, prompting him and several others to maintain positive ratings on the Redmond, Washington- based company. ``What you're seeing is nervous investors getting out of Microsoft, creating an opportunity for long-term investors,' said Aaron Scott, an Advest Inc. analyst in Hartford, Connecticut, who reiterated his ``buy' rating on Microsoft. ``It's good for people who bought stock in Red Hat and Sun Friday, but Microsoft is still the same company it was Friday.' Red Hat's Linux system was developed in 1991 by Linus Torvalds, then a student at the University of Helsinki. The program was created as ``open source' software, which means anyone can download Linux from the Internet and tailor it to their needs. The legal blow to Microsoft could be good news for the U.S. economy, an expert said. The Windows operating system is installed on more than 95 percent of new personal computers. In theory, competing products could improve the efficiency and reliability of all workers by cutting down on computer shutdowns and reboots. In addition, rivals may come up with better basic business software, such as spreadsheets -- or force Microsoft to bring enhancements to the market sooner. ``This could unleash innovation we haven't seen for ten years,' said Jeffrey Eisenach, president of the Progress & Freedom Foundation, a Washington think-tank that has supported the litigation against Microsoft. ``We have not seen much on that front in quite some time.' ¸1999 Bloomberg L.P.

To: Frank Ellis Morris who wrote (33295)	11/8/1999 7:24:00 PM
From: Alan Buckley	Read Replies (1) \| Respond to of 74651

[Now I ask what is this thing with Rhat and does it really impose any threat to Microsoft?? Also are there any other companies with promising opportunity for investors who compete with Microsoft] IMO RHAT (i.e. Linux) is more a thorn than a threat at this point. Some customers will threaten to adopt Linux for bargaining leverage, reducing Windows server profit margins. Linux is a very viable alternative for certain server applications. However, I believe it's desktop potential is yet to be proven. Honestly, I'm glad Linux exists as it forces MSFT to maintain a responsiveness on small customer server-side issues/complaints. MSFT has shown a focus that's too much on the high-end server business potential rather than the small and medium server business potential, which I believe is more winnable and equally strategic short term. Win2000 doesn't have to dethrone SUNW in the high-end. It's the follow-on release that must make inroads there. AOL is the most serious threat to MSFT at the moment, i.e. the one with the tools to change the rules of the game. SUNW and ORCL, I believe, are going to be very busy defending their server business in the next couple years. They'll make good money certainly, but I'd be surprised if they made significant inroads on MSFT turf. I have great confidence in the Unix companies complete inability to work with each other. The Java based Network Computers they were hyping have proven underwhelming in customer trials. IBM and NOVL have both moved to paths where they don't butt heads directly with MSFT as much, which I believe was smart in both cases. I don't see any frightening threats to MSFT from either in the next few years. In recent years, MSFT has been scared of being blind-sided by the little computers, e.g. cell phones, hand held PDIs, set-top boxes, and game machines. I believe they have devoted enough resources there that they will participate in any "little" revolution, rather than be overrun. In short, I don't see MSFT being dethroned in the next 3 years. The explosion of new billion dollar internet companies, such as YHOO and AMZN will continue. These, however, are generally complementary to MSFTs goals.