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Photo: Associated Press
MSFT Flat Before Analyst Day
Shares of MSFT are trading sideways as annual analyst day is underway today. Anticipate news flow from Redmond which could affect the stock. Other upcoming catalysts include upgrade cycles of Office 2010 and Windows 7. The stock currently trades at 9x Enterprise Value / TTM Free Cash Flow, inexpensive compared to historical trading multiples.Microsoft’s Loss Of Yahoo! Japan Is A Market Share And Strategic Blow (Credit Suisse)
Philip Winslow at Credit Suisse is disappointed that Microsoft lost the search deal with Yahoo! Japan from a market share perspective. That said, he is pleased with the progress made in the Yahoo! search integration in the U.S. Microsoft recently indicated that both algorithmic and paid traffic of Yahoo! search will have migrated over to Bing in the US for the holiday season. He believes addressing the company’s relatively low market share in search advertising represents the core competitive issue for Microsoft’s Online Services Division, as relative market share drives competitive strength in terms of both revenue and operating scale.
Buy Microsoft Against The Tide (The Street)
Mark Fuchs tells traders to get ready, invest against the grain and stay away from the rest of the crowd. Microsoft should not be one of the stocks that trades with the market (and in the most recent case, down). The company is firing on all cylinders and growth will come after a long and messy road. So as the mood turns sour, gravitate toward those companies with proven results like Microsoft. He believes the downside is limited.
If You Don’t Want To Buy The Stock, Buy Exposed ETFs (Seeking Alpha)
To gain access to both Microsoft and Apple without outright purchasing the stock, consider the following exchange traded funds (ETFs):
- iShares Dow Jones US Technology (IYW), which allocates 12.22% of its assets to Apple and 10.44% to Microsoft.
- PowerShares QQQ (QQQQ), which allocates 19.97% of its assets to Apple and 4.34% to Microsoft.
- Technology Select Sector SPDR (XLK), which allocates 10.71 % of its assets to Apple and 8.91% to Microsoft.