If the talks proceed well, it is possible the case could be settled by the end of the year. |
In this market, you have two choices. Either you sit on the sidelines or you say you want to be in companies that you feel comfortable with. |
It looks like a bubble, but the underlying trend is too powerful to ignore. |
Management maintained full-year 2001 target of 20-to-30 percent revenue growth. To be conservative, we are trimming our estimate from $3.3 billion to $3.2 billion. |
Near-term forecasts call for pain, especially in the travel sector. |
Near-term, in a market environment in which investors are fleeing to quality, its stock could continue to do well. Our analysis, however, suggests that the company's long-term earnings growth is likely to be slower than the 15 percent to 20 percent consensus. |
Our estimate for fourth quarter product revenue is approximately $1 billion. To achieve our estimate, we believe Amazon has to book about $750 million in the eight week holiday season. Our back-of-the-envelope analysis of the Delight-O-Meter suggests it is off to a solid start. |
Our preliminary conclusion is that, although Microsoft is not out of the woods, it will be slightly more free to compete on its own terms than we expected it would. |
Settlement talks, if any, will likely be very complex, with multiple parties involved. |
Since one of these possibilities would be negative for the stock (earnings miss), two would be neutral, positive, or negative (acquisition, management change), and one would probably be positive (takeout / strategic investment), it is hard to know what the impact on the stock might be. |
Some legal experts believe that the appeals court ruling will have a ripple effect overseas, leading to increased activity in a region where Microsoft lacks the political clout that it has in the U.S.. |
Street analysts tend to aim low, especially when they like a stock. |
The big question mark remains the long-term sustainable growth rate, especially with continued deceleration of U.S. business. |
The biggest challenge AOL faces is really controlling its usage-based cost structure. |
The company believes in one service with multiple devices...the proliferation of devices could actually be a demand driver for broadband due to the cost of additional phone lines. |