People were too optimistic. This stock will experience some weakness like the others have in recent weeks.
This doesn't change the size of the pie that people are fighting for. It just makes it more likely that Microsoft will get a bigger chunk of it without the government interfering.
The biggest problem is that you have reluctant sellers. There has not been enough pain yet.
I find it a little bit comical that Microsoft is going with the lower number, which I applaud, and yet the analysts still want to stick to the see no evil, hear no evil, speak no evil, higher pro forma number.
It's profit taking. The market loves to do that. Good news hits the tape and investors sell into it.
AMD should keep flash memory for the diversification benefits of it. Flash memory gives AMD something to talk about when the microprocessors results are weak.
It's good that management is not going into a shell and saying they want to preserve cash for the rainiest of rainy days since it is already rainy.
On paper, marrying content with distribution makes a lot of sense but in reality it's been a tough nut to crack.
This is the same company that reported strong cell-phone order numbers on the surface last year this time and then managed to come out about a quarter later and say there was too much inventory out there.
There's no question that the more chip stocks go down, the more they should look appealing. But with that said, I don't think you can go in here and buy things left and right and be bailed out by the cycle anytime in the near-term.
The growth outlook for Microsoft is very muted. To a large extent it's unexciting. They've been paddling really hard to create new avenues of growth but they're limited by the personal computer side of their business.
Guys like me are probably going to take a little bit of a wait-and-see attitude.