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NASDAQ:MSFT

Microsoft Corp (MSFT)

522.61
-7.15 (1.35%)
as of Oct 8, 2026, 8:00:00 pm Market Open.
1799 watching
0
BUY
Disappointing performer, in part because of the debacle with Yahoo (YHOO-Q). Certainly need something on the search side and expects that they will. Cheap on cash flow/earnings so she thinks it is nearing a bottom. Expects it will return more cash to shareholders.
TOP PICK
$23.31 is the model price, a 35% positive differential. Have $40 billion in cash and no debt. Yielding 3%.
BUY
Likes software. Great recurring revenue line. Would prefer something with higher growth such as Oracle (ORCL-Q). Doesn't see how you will get hurt in this stock. If you are looking for something that will participate when things get better, this will.
COMMENT
Just reported weak numbers and refused to give out guidance in cutting 5000 jobs. Large cash balance. Would consider at $14-$15.
WEAK BUY
Formed a bit of a consolidation range between $18 and $21. If it breaks above $21, it could go up another $4.
BUY
A covered call strategy would be more practical. He would use a stock replacement option instead of the stock. Sell your front month at the money or slightly out of the money Call, month in and month out. This company might have a little downside left in it.
COMMENT
Doesn't think it will get together with Yahoo (YHOO-Q). Yahoo management behaviour during the whole Microsoft bid was appalling bad.
DON'T BUY
Very successful company over the years but they really are living on past glories. Producing a lot of cash but doesn't seem to be able to come up with a home run. There are a lot of companies he would rather own in the technology space.
COMMENT
Microsoft (MSFT-Q), Cisco (CSCO-Q) and Intel (INTC-Q) are probably going to weather the downturn relatively well. They are all effectively utilities and have significantly free cash flows with little or no debt.
SELL
This stock has been doing nothing for a very long time. May bounce back up to $24.
COMMENT
Cash is well in excess of all book liabilities. He likes to get in at 10x peak earnings or less.
WEAK BUY
Likes US large-cap stocks right now and likes the software sector. Most of these companies generate an enormous amount of cash and need virtually no financing. Earnings multiples have come down a ton over the last 8 years. Think you could probably make money on this one. Given a choice, he would rather own Symantic (SYMC-Q) or Sybase (SY-N) but you will probably be okay in this one.
BUY
Have such a fantastic core business that anything acquired is dilutive. The core Windows and Office Franchise continues to generate well over $1 billion in free cash flow every month. Have over $30 billion on the cash sheet waiting to be deployed. Trades at it free cash flow yield of close to 8%.
DON'T BUY
Was on the cutting edge for years and years but seem to have lost their way a little bit. Still a great company and generating revenues. Growing at a lot slower rate than some of their competitors.
SELL
There will be a better chance to buy this company. He is standing on the sidelines right now.
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