Software giant Microsoft (Nasdaq:MSFT) has hit another one of those pockets where there is just not much going on to excite investors. The next iteration of Windows 8 won't come out for months, the company is annualizing the Office 2010 launch, the PC market is soft, and a lot of the company's enterprise products are still building up some momentum. So while this stock looks quite cheap on its cash flow generation potential, value-oriented investors interested in this name have to bring ample patience with them as well.
A Ho-Hum First QuarterMicrosoft reported overall revenue growth of 7%, which is not so bad in the broader context of mega-cap tech names like IBM (NYSE:IBM) or Oracle (Nasdaq:ORCL). Revenue from Windows was up just 2% as sluggish domestic PC growth hurt sales and rampant software piracy in regions with high PC growth sapped sales. The server and tools segment showed a nice 10% increase in sales, while the business unit was up almost 8% and entertainment was up more than 9%.
Read more at Investopedia:
http://stocks.investopedia.com/stock-analysis/2011/Microsoft--Little-Expected-Little-Delivered-MSFT-IBM-ORCL-VMW-YHOO-GOOG-AAPL1024.aspx?partner=YahooSA#axzz1bhhgayhH
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