UBS’ Heather Bellini was one the first analysts to predict Microsoft (MSFT) may blow its quarter, something most everyone now believes.
Heather still thinks Microsoft will miss both revenue and EPS. But shareholders shouldn’t despair, she says, reiterating she thinks the stock is a Buy. Why?
- Microsoft is a “better house in a bad neighbourhood,” and remains better positioned than the rest of the dismal software industry.
- She thinks long-rumoured layoffs may have already begun. (If they have, there’s nothing about it yet on the Web or Twitter.)
- Microsoft has never had to worry about cutting costs before. Heather thinks the company can trim 5% of fat from its expenses easily.
And here’s her advice on dealing with Yahoo (YHOO): Microsoft needs a search deal, and if Carol Bartz won’t play ball to sell off a piece of Yahoo, Heather thinks Microsoft should acquire the whole thing. Here we go again…
See Also: Microsoft May Blow Quarter — Analyst