Jun
19
Written by:
Steve Patterson
6/19/2009 10:27 PM
Microsoft (MSFT) Moves Higher on Bing Optimism?
Reading Goldman Sach’s new rating of Microsoft from the Buy status to the Conviction Buy status makes one wonder if Bing is really all that much different than Live. Live was the companies previous attempt to get search traffic away from Google, while Bing is the companies latest. Goldman feels a price target of $29 a share is realistic with the stock currently at $24.07 a share after a 2.5% increase today.
Expensive Price?
The stock has had a very nice run from near $17 a share to the current price over the past three months. At it’s current level, the price to earnings ratio is almost 14 with the company expected to earn 8.6% less this year than the prior year and 5.8% more next year. Thus making the stock expensive unless you strongly feel the income will improve before the final earnings numbers are released. Yet the majority of analysts have dropped their expectations for the current quarter and the year over the past 90 days.
Windows 7
The excitement over Windows 7 is well deserved and is more than likely the catalyst for the recent movement higher. Reading the company’s most recent 10Q report, Online services is a very small part of the company that is still losing money. While Client, Server and Tools, and the Business Division make up most of the company’s profit. Client which includes Windows has fallen over the past year 16%. So a boost in this category would have a significant reflection in the earnings.
The Trade
Wait for a pullback in the stock if you feel there will be additional appreciation going into the release of the newest Windows operating system.
© 2009 FastSwings.com
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14 comment(s) so far...
Re: Microsoft (MSFT) Moves Higher on Bing Optimism?
That's a good point. MSFT has sky rocketed this past two weeks. The strength definitely supersedes the overall Nasdaq.
I do see that MSFT is losing steam now and facing some resistance. What do you think of my analysis Steve? www.my10000dollars.com/technical-analysis-62209/
By Hiro on
6/21/2009 12:35 AM
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Re: Microsoft (MSFT) Moves Higher on Bing Optimism?
From a technical standpoint, the volume was good on Friday as the stock moved higher which indicates more movement higher. But with the overall market stalled, I would think MSFT would stall soon also.
By Steve on
6/22/2009 10:02 AM
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Re: Microsoft (MSFT) Moves Higher on Bing Optimism?
I really don't know much about MSFT. This article shared me some knowledge about that. Thank you for posting
By Breaking News on
6/24/2009 4:47 PM
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jeux
a article that deserves to be discovered
By jeux on
6/25/2009 12:00 PM
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Re: Microsoft (MSFT) Moves Higher on Bing Optimism?
It's interesting to see where MSFT is now. It seems to be consolidating now.
By Hiro on
6/25/2009 9:52 PM
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Re: Microsoft (MSFT) Moves Higher on Bing Optimism?
thanks, really interesting to see where MSFT is now
By re-roof west yorkshire on
7/6/2009 6:03 AM
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Re: Microsoft (MSFT) Moves Higher on Bing Optimism?
That's pretty weird actualy. I know that microsofr is hyping bing but still barely anyone uses it. It'll go down soon enough.
By Stancje on
7/10/2009 7:26 AM
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Re: Microsoft (MSFT) Moves Higher on Bing Optimism?
MSFT is surely going to be consolidating and the stock will move higher and higher soon.
By smith on
7/14/2009 3:00 AM
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Re: Microsoft (MSFT) Moves Higher on Bing Optimism?
Microsoft really has some aces in the hole. And windows 7 will only strengthen the position of this monopolist company.
By Hotelier on
7/22/2009 4:32 PM
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Re: Microsoft (MSFT) Moves Higher on Bing Optimism?
Microsoft just sealed the deal with Yahoo on their Search advertising platform - that should help the share prices!
news.bbc.co.uk/1/hi/business/8174763.stm
By ASX Share Prices on
7/29/2009 10:55 AM
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Re: Microsoft (MSFT) Moves Higher on Bing Optimism?
Thanks for the article. I didn't know much much about MSFT and it was very informative.
By Camisetas on
7/31/2009 12:15 PM
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Re: Microsoft (MSFT) Moves Higher on Bing Optimism?
People tend to figure that Microsoft makes a lot of dumb moves (example entering the gaming industry) but now being the second largest company for that there stock will move up greatly. Now with Bing turning heads as well, we should expect more from them.
By HID on
8/2/2009 1:57 PM
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Re: Microsoft (MSFT) Moves Higher on Bing Optimism?
It will be interesting to see how Bing is received. The feedback from the online world and forums I have seen is not positive. It will be interesting to see how Bing redefines search engines and search engine searching.
Interesting times online for most of us.
dave
By spread betting for beginners on
8/4/2009 7:50 AM
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Re: Microsoft (MSFT) Moves Higher on Bing Optimism?
Hmmm.. I just read the news about MS and Yahoo to team up and aim to topple down the big G. Is it true? Confirmed?
By Palm Beach Wedding Photographer on
8/5/2009 5:40 PM
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