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MSFT Down In A Recovering Market
Stocks are recovering today after selling off yesterday on the downgrade of the U.S. debt outlook. Better-than-expected earnings from Johnson & Johnson and Goldman Sachs lifted the markets in the early trading. Shares of Microsoft are in the negative, as the tech sector also fell a couple of hours after the open. Upcoming catalysts include fiscal third quarter earnings to be announced on April 28 at 5:30pm Eastern Time; any entrance in the tablet market; Windows Phone 7 adoption with hardware partner Nokia; strides against current market leaders in cloud computing; gaining search market share with Bing / Yahoo! partnership; and continued momentum of Kinect. The stock currently trades at 8x Enterprise Value / TTM Free Cash Flow, inexpensive compared to historical trading multiples.Microsoft Tries To Fend Off Google Apps / Docs (Venture Beat)
Microsoft’s cloud-focused Office 365, a subscription service that brings online Office apps and other Web tools to small businesses, has opened up to public beta testing. The product ties together an array of offerings into one Web-hosted service. The beta release is available in 38 countries and 17 languages, as the tech giant works to fend off challenges from Google. Although Office 2010 is selling well, Google Apps is providing some competition. One recent study showed that nearly 20% of U.S. companies have deployed Apps in some form. Read more at Business Insider.
Is Microsoft Finally Making A Killer Tablet App? (ReadWriteWeb)
New screenshots show that Microsoft is making good on hints to add a new application to its next version of its Office suite (expected to ship around 2013). In January, the company hinted that it planned to continue to hone with Office 15 “creation experiences,” like video and image editing. Screenshots of Moorea, have emerged and it is described as an application that lets you store multiple types of media in one place. Read more at Business Insider.
Microsoft Says Business In Japan Is Really Strong (Bloomberg)
Kevin Turner, Microsoft COO, made comments to reporters in Singapore on business performance in Japan and other markets and its plans to invest in cloud computing. He says despite the national tragedy, “business in Japan has been really strong.” He also said business has been solid in emerging markets, some even “off the charts.” Turner also took the time to tout Office 365 and dedication to cloud computing.
Daily Trader: Microsoft Is A Low PE Mega-Cap Company With At Least 25% Upside Potential (Seeking Alpha)
According to the consensus estimates, Microsoft’s top line is expected to grow 11.56% current year and 6.45% next year. It is trading at a forward P/E of 9.27x. Out of 35 analysts covering the company, 24 are positive and have buy recommendations, one has a sell recommendation and 10 have hold ratings. Consensus calls for a price-target on the stock of $32.66, ~30% above the current market price.