kowenicki said:
Not unsurprising really as Microsoft has more than doubled its revenues over the last ten years and its earnings have more than quadrupled over the same period. So you have to wonder why the stock hasn't increased earlier and by even more. I guess the market likes the new leader. Anyhow, all good for stock holders.
Doom indeed.
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The problem of the stock price stems back to 2000 and the internet bubble. Everyone else crashed, MS crashed too, but even after the drops it was still trading at a PE many times the rest of the market and many times realistic value of the company. It has taken best part of 10 years to grow into their share value, now they are perhaps a little undervalued but the preceding 10 years of no share price growth (even though the company itself has grown massively) is holding back some investors. You will still see articles whining about how bad Balmer did based on the share price even though he presided over some of the most successful growth years in the companies history.