Rick Sherlund
Rick Sherlund
believe below earlier encouraged flow good growth historic likely products raised relative safe shares stock valued
We are encouraged by this and have raised estimates, essentially back to earlier levels. While the stock is richly valued and the growth is still well below historic levels, we believe there is a good flow of upcoming new products and the shares are likely a relative safe harbor.
appear due earlier estimate evidence fast growing growth likely march november occurred offset pc quarter reducing revenue sluggish unit weakness
We are reducing our March quarter revenue estimate due to growing evidence that PC unit growth did not likely come up to our expectations. PC growth was very sluggish from November through February, and while it reaccelerated in March, it does not appear to have occurred fast enough to offset the weakness earlier in the quarter.
bad likely news reflected
significant bad news may likely already be reflected in the stock.
likely march questions raise strength
Intel's pre-announcement will likely raise questions about the strength of Microsoft's March quarter.
account consumer corporate demand estimate likely line pc percent relatively revision sales total
Consumer PC sales account for only about 10 percent of Microsoft's total revenues, so with corporate demand likely in line with expectations, our estimate revision is only relatively moderate,
believe bit group likely oracle quarter rest results september shy software
Extrapolating from Oracle as a bellwether for the rest of the software sector, we believe the September quarter results for the group will likely come in a bit shy of estimates,
advantage both calendar designed drive due expect features further generation half likely next office products release revenue second windows
We expect the release of Windows Vista and Office 12 to further drive revenue as both products are being designed to take advantage of collaborative features in the next generation of server products (SQL Server 2005, BizTalk Server 2006, and the 'Longhorn' or Vista Server likely due out in the second half of calendar 2007).
address conclude direction gotta microsoft step taking today understand
I see Microsoft today saying, 'We understand that. Here's our first step in that direction, and how we address it.' That's all I think you can conclude today, is they're taking their first steps. They've gotta do it.
bad believe news software
We do not believe all the bad news is out yet in the software sector.
appears business currently line management plans spoken tracking
We have spoken with management and there are currently no plans for an pre-announcement, as business appears to be tracking in line with expectations,
begin believe benefit cycles earnings increase late momentum office revenue stock upgrade windows
We believe there will be an increase in revenue and earnings momentum and a corresponding benefit to the stock as Windows Vista and Office 12 upgrade cycles begin late in the year.
figure growth rate trying
I think the Street's trying to figure out what is the long-term growth rate here,
activity appears comment management status
Management will not comment on the status of the DOJ settlement discussions, but it appears to us that things may be heating up, ... There appears to be a flurry of activity on the settlement front, but no way of gauging probabilities.
cap combine company equal far ford general growth half market premier trading
Microsoft's market cap right now is $208 billion. If you were to combine Ford and General Motors market cap(s) . . . that would only equal half of (Microsoft's) market cap. Granted, (Microsoft) by far is the premier growth company in the world today. But again, it is trading at 60 times earnings,