Re:Tech Stocks Roar Again in Faint Echo of 2000
by cletus on Saturday October 28, 2017 @11:11PM
(#15577801)
Who's to say they weren't undervalued previously?
As for Microsoft specifically, it's run largely coincided with Satya Nadella succeeding the largely lackluster Baller. Coincidence?
Re:Tech Stocks Roar Again in Faint Echo of 2000
by deanCommie on Sunday October 29, 2017 @10:48AM
(#15579503)
Microsoft still dominates a huge Software market - is there a viable competitor for the Office suite?
And Azure is doing pretty well too - it's a 3 horse race with AWS and Google, and there does not necessarily have to be a single long term winner.
Re:Tech Stocks Roar Again in Faint Echo of 2000
by adventurer on Sunday October 29, 2017 @12:01AM
(#15577909)
Looking at the charts back to 2015, Microsoft has grew earnings pretty steadily. I believe they attribute it to pushing everyone to the cloud.
Re:Tech Stocks Roar Again in Faint Echo of 2000
by adventurer on Sunday October 29, 2017 @01:02PM
(#15580095)
*grown? Ah, geeze.
That's the part where the market has kicked into bubble valuation territory, when you're primarily seeing multiple expansion driving 40% or 100% type gains.
Microsoft hasn't been able to grow earnings for years. Why do they have a 30 style PE ratio? Why did their stock triple on zero earnings growth? Comparing their growth today versus the multiple, against 2000's valuation, today's value proposition is drastically worse. Or spread it out, compare 1995-2000 MSFT growth, with the multiple they had at the end of that five years, versus 2012-2017 growth and the multiple they have now.