Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: j g cordes who wrote (8739)	6/28/1998 8:21:00 PM
From: ed	Respond to of 74651

Why do you think MSFT can't sustain its previous growth ? Data Quest predicted a 15% growth in total units of worldwide PC shippment, MSFT had 95% of the OS market on PCs. Besides OS on PCs and other related softwares for PC application, how about NT5, which will be released in 1999, and which is a new market for Microsoft and will generate new growth for Micrisoft's total revenues. How about Direct TV, and E-commerce ? all those are new areas for Microsoft to grow its business in the years to come. So, there is no question for Microsoft to contnue its growth in the years to come, and the sky is the limit. As to the utility companies, none of those utility companies own more than 95% of the world market, and the growth of those business is correlated with the natural growth of population and it is never driven by the utility companies. But for Microsoft, it owns 95% of the market shares of certain products, and its growth is controlled by itself and the market is far from saturation. Currently, 42% of the US families have Pcs, and in year 2001, that number will be over 60%, and not mentioned the world market and that some families may own more than 2 PCs. I think you still remembered that the PC business started with 8086, then 8088, 80286, 80386, 80486, and 80586, Pentium, and Pentium II. As software getting more and more complex, we hardly see any PCs of 80386 or below exist in the market, which means, as softwae getting more and more complex, and more applications come to play, certain machines will be out of date from time to time, and the PC market will never be saturated. Pretty soon, you will see the standard machines in the US families are Pentium II, and this model is far from saturation. Who drive the uppdate of new PCs ? It is Microsoft , which release new software for new application all the times, and which will obsolete the old machines and push for new and more powerful machines. That is the reason why Microsoft will sustain the current PE, which is not high, and will sustain even higher PE in the next five years when Microsoft will get into another higher growing cycle.