Microsoft Down But Not Out

by The Investment U Research Team

There has been a lot of news on tech bellwether Microsoft (Nasdaq: MSFT) recently – most of it negative. The stock took a nosedive on Friday after reporting quarterly profit had dropped.

The news ranges from Microsoft forced to add other browsers to its software to avoid antitrust issue in the EU, to its bottom line harmed by netbooks and the broader economy.

This doesn’t even get into the ignored weakness in the tech sector.

Far from out, Microsoft is a phenomenal buy right now. Friday’s drubbing makes the stock even more attractive – from a growth or income perspective.

We’ve talked before about Microsoft’s Windows 7, but let’s get more to the point of profits. We know many individuals and businesses are waiting for this new version to upgrade their current Windows XP. When it rolls out, it should have an immediate impact on the bottom line.

And as much as MSFT has been trying to diversify around the tech segment, including video games and browsers, software is still their main bread and butter.

Win 7 should give us a good indicator for the strength of Microsoft. If it does well, you’re sure to see headlines like “Sleeping Giant Wakes Up,” and Microsoft Back in the Game with Win 7.”

The fact is, Bill Gates baby is doing just fine as an adolescent, and while recently down, should never be counted out.

Symbols mentioned in this article: MSFT

Comments

By submitting your comment you agree to adhere to our Comment Policy and Privacy Policy.

Check out our selection of daily investment research: