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Buying stable businesses would signal to the market they don't intend to innovate and so it's overinflated stock price would plummet.
by marshallp 17y ago
Buying stable businesses would signal to the market they don't intend to innovate and so it's overinflated stock price would plummet.
- jakarta 17y agoBut Microsoft's not really trading at an inflated price. On an EV/EBITDA basis the company is around 10x. Conversely, Apple is around 15x and Google is about 16x. Both multiples imply some pretty rich growth prospects whereas MSFT's 10x does not.
- sahaj 17y agoi'd say that it's 10x because the future does not look very promising for MSFT. their margins are going to take a hit when businesses start to Go Google, consumers start buying home computers with ChromeOS/MacOS, and WinMo gets completely driven out of the market by Android. also, It’s not a failure when something like Orkut doesn’t take off: it’s a successful risk assessment. i can't understand why folks think Orkut is not doing well. i'm Punjabi and nearly everyone who is my age group, that i know in India, has an Orkut account.