Despite the jittery economic conditions, Microsoft beats Wall Street’s expectations. Vista Office, Xbox Games do it for Microsoft as the software giant quarterly earnings exceed Wall Street’s expectations. Microsoft earnings jumped 79 percent to $4.71 billion, or 50 cents per share, from $2.63 billion, or 26 cents per share in the second quarter last year.
Microsoft attributed its success to better worldwide PC shipments, tougher anti-piracy measures and growing numbers of businesses switching to long-term volume software licenses.
I expect Microsoft shares to continue with the upward move–line up fellas (Mo buck). I think it’s a bit late for those who want to trade Microsoft shares for the short term; but for long term Microsoft is a perfect stock. Tons of cash, doing everything right, games, software you name it; Microsoft is in it—even in cars….oh boy!
The only part Microsoft doesn’t seem to be doing right is in Google’s turf: Online advertisement. Google here is King, emperor, the king of the jungle and Google is not yet ready to let that go anytime soon. Despite Microsoft’s great earnings and paintings of an extra, extra beautiful out look, Microsoft’s online division continues and will continue to lag for a while…but before I pen off, think about this for a second. Microsoft acquired aQuantive Inc and online Ad company, and also released Microsoft Server 2008 and the SQL Server 2008 database system which go hand in hand with the vista PC’s they’ve shipped so many of…and who knows what is buried beneath the code…. This could turn out to be very interesting. Let me just say that Microsoft is laying a great infrastructure for the future. For the long term, I will stick with MSFT that’s my opinion.
Enough said… expect the markets to go up today as everyone forgets about the economic crisis for a while. Be cautious on what stocks you buy, whether you invest or trade.
Final question, Caterpillar (CAT) is expected to report today if they don’t beat their earnings or give a rosy forecast, what do you think will happen to the stock market? Good luck!
