In analysts' eyes, Microsoft is still a giant with legs
Article Abstract:
Several analysts who hold Microsoft stock are cautiously optimistic that the company will ultimately attain a relatively painless antitrust settlement. Constant industry innovation will likely render the Government's case irrelevant, according to Kevin Landis, portfolio manager for the Firsthand Technology Value fund and Technology Leaders fund. Microsoft's stock price could surge even through a protracted legal battle, according to Robert E. Turner, CIO of Turner Investment Partners and Turner Growth fund manager. Microsoft has maintained its investor credibility despite Justice Department scrutiny and eventually will resume its stock climb, said Scott W. Schoelzel, a manager of the $8.5 billion Janus Twenty fund. Only slight Government modifications will allow Microsoft stock to reach $110 in 1998 and $130 in 1999, according to Philip J. Orlando, CIO for Value Line Asset Management.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
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In Microsoft case, a lot of not very much
Article Abstract:
The Justice Department has presented little substance after the second week of its antitrust trial against Microsoft, according to George L. Priest, the John M. Olin Professor of Law and Economics at Yale Law School. Priest, who is taking an outsider's view of the trial, says no evidence asserts that Microsoft's bundling of its Internet Explorer Web browser and Windows OS lacks superiority to unbundled browsers such as Netscape's Navigator. This raises questions of customer impact and whether consumers are worse off. A ruling against Microsoft would have dire consequences for consumers, the economy and the world, because it would impact an industry that features constant market turnover. By contrast, antitrust laws were formed in the context of manufacturing, where the costs of entering the market allowed leaders to maintain their lead for longer periods of time.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
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Microsoft logs gain of 28% in earnings; reports Windows 98 'is off to a flying start.' (4th qtr 1998) (Company Financial Information)
Article Abstract:
Microsoft reported earnings of $1.36 billion, or 50 cents a diluted share, for the 4th qtr 1998 that ended Jun 30. By comparison, Microsoft listed $1.06 billion, or 40 cents a diluted share, for the 4th qtr 1997. The announcement slightly surpassed analysts's per-share projections of 48 cents in a First Call survey. The PC software market leader also announced that Windows 98 OS software sales already exceeded one million despite its Jun 1998 market release. Revenue of $4 billion represents a 26% leap over the 4th qtr 1997's total of $3.18 billion. A sharp increase in general administrative costs, such as legal expenses, did not alarm Microsoft officials. The company also continued to predict a slower growth rate, especially given 1997's earnings surge of 82% and revenue growth of 41%.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
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