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

To: ThomasG who wrote (61731)	10/18/2001 7:14:54 PM
From: Bob Duncan	Respond to of 74651

Thomas, Interestingly, I think SUNW stands to do better over the next year NOT because they are a better company, but because they have done so poorly lately. Consider, SUNW could have 30% year over yearr revenue growth next year and become profitable, and the papers will pick that up as "impressive" growth. MSFT on the other hand has executed amazingly well in very poor times, but now their comps remain difficult to top next year. Don't get me wrong. This was a great report. Its just if we hit a recession long term, and MSFT stays flat or has a slight revenue decline, this stock is going no where fast. Stocks like SUNW that had horrid quarters at least now have easy comps a year from now. Just my opinion. Strange action after hours, I would have thought more upside. Perhaps tomorrow? Then again, everyone seems to be singing this stocks praises which means most people I suppose are long ahead of this news, so it could sell off tomorrow.

To: ThomasG who wrote (61731)	10/18/2001 9:16:01 PM
From: David Howe	Read Replies (1) \| Respond to of 74651

<< This is only 1c-2c lower than June guidance Revenues are also projected to be roughly the same as last June guidance. >> Exactly. I hardly call this guiding down. << The key point to note is that Microsoft are assuming FY02 PC sales to be as bad as they are now. So there is the potential for FY02 earnings upside if the economy recovers in the 1st or 2nd qtr next year. These results are actually pretty impressive given the weak economic climate and the fact that everybody will have delayed a pc purchase until after XP launch. >> Exactly. MSFT fundamentals look stronger to me now than they did before this report. That probably won't matter though, the market looks like it is headed down at this time. IMO, ave