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by fan
5848 days ago
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One big assumption that the article is leaving unstated is that the market is valuing things fairly. That is, the analysis depends on the market valuation being correct. In fact, it usually tends to be the other way around. PE ratios predict future returns in a negative way. A high PE means a company is generally overpriced, empirically more often than the earnings will just grow. |
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I don't think Microsoft is going to have a renaissance and overtake Google or Apple in the future, but I think the stock is under-priced relative to Google or Apple (or GOOG/AAPL are overpriced in comparison).
Apple, more than Google, is being purchased like its gold. Like its the safest asset on the equity exchanges. There are good reasons for this, but it has over inflated the value of the stock.
MS doesn't do the cloud right yet, which is a something they are working to rectify. With that said: I dont think the future is 100% cloud based, and Windows products are going to be on the majority of non-cloud hardware implementations. Who knows how big the slice will be when the cloud goes mature, but it will be there, and MS will dominate it.