Sunday, August 21, 2011

Good Post on MSFT

From Stableboy:

46% of Microsoft’s operating income comes from Windows; 40% comes from Office. Apple and Google have the potential to torpedo both operations. Microsoft has zero share of mind and zero emotional goodwill. There is a high probability that Microsoft EPS can only increase via share repurchases. It is not a good short. It is not a good long.

The long case seems to be that Microsoft has the potential to have a hit product. Judging by the creativity of its employees I think that would be a miracle.

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