| yo_john117 said: Is there a specific reason for such a big increase? Or is it just a combination of all the success they've been having lately? |
It is due to their success. Despite declining PC sales their profit continued to increase, especially in cloud, mobile, gaming and enterprise software markets. Windows 8 despite all the doom merchants hasn't been a flop sales wise (though it hasn't been fantastic either, just solid). Also their shareprice has never been this cheap, yes their stock has bounced roughly around the same numbers for a decade, but the actual underlying business hasn't. They have massively increased revenue and profit and their shareprice was arguably way way overvalued back in the dotcom boom and even post boom where they were trading in the 20-30 PE range. They now trade at a PE of just 17 and a forward PE of 11 making them priced as a blue chip stock with plenty of opportunity to grow.
