Following strong earnings results by IBM and Intel, Wall Street appears to be increasingly confident that Microsoft will also deliver better than expected quarterly results.
While Microsoft has certainly been feeling the impact of the recessionary environment, we feel that Intel’s strong second quarter performance could be indicative of what we can expect from Microsoft.
Last month, Best Buy reported better than expected quarterly results and this week Intel did the same. We view those both as positive indicators for Microsoft’s upcoming earnings announcement.
We believe that a Microsoft-Yahoo deal will eventually take place, and believe that it will likely be a positive development for Yahoo. However, the reality is that Yahoo is facing one of the worst advertising environments in decades.
The combination of lack of buyer demand and aggressive price cutting could lead to some difficult quarterly performances this year by the major tech companies.
