Add to that the incredible sales of Halo 3 since its debut in late September and there are many bright spots on Microsoft's armor. However, Windows Vista uptake has been slower than some forecast, and that's not the whole negative story. Although its games division is peaking right now, there are years of hard work ahead to make that area consistently profitable and growing. So, again -- why buy Microsoft?
Microsoft's corporate products get little attention from the mainstream media these days, but its Office and Exchange software franchises continue to be the lifeblood of many global companies. Sure, Google is trying to nip away at those services with semi-comparable web-based offerings, but that effort will limit itself before becoming a large threat. As noted by 24/7 Wall St., newer products are on tap, and Goldman Sachs strongly hints at a bright future for the company, at least in the short term.
Microsoft shares really have not moved much in recent years, but the company is so far from being out of the game it's laughable. Microsoft has tens of billions in cash and little long-term debt. While some pundits say the company should shut down and return all that money to shareholders, others think Microsoft has a bright future ahead of it, even if it is not perceived as being the innovator it once was. Once co-founder Bill Gates leaves the company, who knows what changes will be afoot. Hint: they're already underway. It might be time to bag some shares while still under $31.
[Disclosure: I own MSFT shares as of 10-17-07.]
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Reader Comments (Page 1 of 1)
10-17-2007 @ 3:37PM
Gumby said...
It depends on how many Vista Ultimate editions MSFT sells and what percentage of all Vistas is Ultimate. If Ultimate is highly popular, it would add so much to MSFT earnings that we would kick our own asses for not buying MSFT stock today....
10-18-2007 @ 4:14PM
Bubba said...
yes, now is the time to buy Microsoft Corp. (MSFT)
while it is still under $32 a share and a bargain.
Standard & Poors ares the stock a strong buy.
I own these shares myself and continue to buy more.