Is microsoft a good stock bur now?

Question

Is microsoft a good stock bur now?

Answer 1

Microsoft is good. Bill Gates is the founder of Microsoft.

Answer 2

Microsoft's P/E is currently about 75% that of competitors Google, IBM & Oracle, so technical analysis might suggest it is "on sale"...but the question is whether the company can continue to prosper (or even has any room to grow and prosper) without Bill Gates as CEO.

Answer 3

This is not an easy question to answer.  Although MSFT has in the past been considered a growth stock, those days might be approaching an end.  Its 10 year annual return is less than 2% which is not something to write home to mom about.  On the other hand its PE ratio is relatively low in comparison to the rest of the market.  Its main source of revenue is churning out revised versions of Windows.  Every one of which is probably in some manner worse than the previous version. But it does have a monopoly on PC operating systems so there really is no competative force at work forcing the company to make a better product.  That may eventually be its undoing.

Answer 4

If you are looking for stellar returns, MSFT is not likely to be good for you.  It will most likely be higher one year from now(7-05-2008) but could still go lower in the short term.  My opinion is that it will trade between 22 and 32 for the next 6 months.  If the economy becomes more stable during that time, we could perhaps see a price of 35 to 40 by this time next year.  Only time will tell and please remember that this is my opinion only and not investment advice.  Good luck.