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


To: taxman who wrote (22366)5/8/1999 1:54:00 PM
From: johnd  Read Replies (2) | Respond to of 74651
 
Taxman, regarding 44% margin, look at the trend in
net margins for msft over the last 3 years. I believe
the net margin can keep going up, at least theoreticaly,
to a point where it is 1- tax rate or 65%. This happens
when most of profits are from investments and relative
expenditure on SGA, cogs and R&D become smaller and
smaller percentage of revenues. I see day in the next
couple of years when msft will hit net margin of 50%.