Many stocks labeled the 'next Microsoft' haven't measured up to the hype...
Article Abstract:
The 'next Microsoft' is a phrase bandied about in connection with almost any initial public offering (IPO) of a high-tech stock these days. Recent aspirants to the crown include NetWorth, whose stock slid 43 percent in one day in Apr 1993; Borland International, whose stock fell 73 percent in 1992; and Broderbund Software, whose stock has also fallen of late. The latest recipient of the hype is 3DO Co, a multimedia startup still without a product. On its first day of trading in May 1993, 3DO's stock jumped from an offering price of 15 to 23-3/8. IPO experts say it is impossible to pick the next huge success, and at any rate, Microsoft, unlike many of today's IPOs, was an established powerhouse in the PC software industry at the time of its IPO in 1986. One dollar invested in that offering would have grown to $37 today. Thoughtful investors also say there is plenty of time to invest in a company after its IPO.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1993
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Microsoft's appeal wanes until Windows 95 appears
Article Abstract:
Big institutional stock-holders and longtime Microsoft bulls, foreseeing a quarter or two lull at the software company as users wait the arrival of Windows 95, are reducing their holdings of Microsoft stock. Microsoft enthusiast Edward Pettner, president of Lynch and Mayer, has sold 60 percent of his Microsoft shares in the recent weeks. Microsoft's stock price has held up well throughout Jan 1995, closing at 61-3 4 on Jan 25, down only slightly from a recent high of 65-1 4. In contrast, jittery investors have lately been hammering other tech stocks, including IBM and Compaq. Investors' concerns about companies' specific problems are compounded by an overall feeling that a multiyear technology rally is on its last legs. Some analysts predict sub-10 percent earnings in the first and second quarters of 1995, down sharply from earnings growth that exceeded 25 percent throughout 1994.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1995
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An anti-virus crusader gets infected
Article Abstract:
The stock of McAfee Associates, a maker of anti-virus software, has been driven down just as the firm is gearing up for the return of the widely publicized Michelangelo virus. Rival software firms and bearish investors say McAfee's CleanUp anti-Michelangelo software might damage a computer's hard disk. McAfee executives, including Chairman John McAfee, say the problem is small in scope. After McAfee stock reached a high of 23-1/4 shortly after going public in Oct 1992, the stock has declined to 9-5/8 on Feb 26, a fall of 10 percent for that last week alone. McAfee is one of several single-product technology firms that investors have moved away from recently. In a separate development, McAfee faces a trial on whether it raised false concerns that Imageline Inc's PicturePak software is tainted with a virus.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1993
User Contributions:
Comment about this article or add new information about this topic:
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