Melissa Eisenstat
Melissa Eisenstat
call clout coming companies deliver departure executives exit fortune heels increases leadership leaves question ray risk senior universal
Bloom's exit coming at the heels of COO Ray Lane's departure leaves only Ellison with the kind of universal clout to call on senior executives at Fortune 500 companies to deliver Oracle's suite message. We think that the leadership question increases the risk to the story.
advise behavioral clarity continue earnings further investors model remedies risks sidelines stay until
Because of the uncertainties and the risks to our earnings model should any behavioral remedies be implemented, we continue to advise investors to stay on the sidelines until further clarity can be gained.
business history management team usual
Noting that this management team has a long history together, we think it will be business as usual for the foreseeable future.
buying consumer december heaviest pc period quarter sales time worse
The slowdown in consumer PC sales could not have come at a worse time for Microsoft. The December quarter is seasonally the heaviest period of consumer buying because of Christmas.
although key legal ongoing source
Although we think the legal developments will be the source of ongoing volatility, we do not think they are key to the stock's long-term movement.
although believe certainly news
Although the news is certainly not a positive, we do not believe it is a 'death blow' either.
absorb although cap enable large market modest next none paying premium small year
Although Siebel is paying a hefty premium for this small company, its large market cap should enable it to absorb this acquisition with modest dilution this year and none next year.
believe civil damages flood law lawsuits likely loss microsoft monetary opens period regard seeking subjects
We regard Microsoft's loss to be a foregone conclusion, which subjects it to damages that will likely be undetermined for a period of months. We also believe the issuing of the conclusions of law opens Microsoft to a flood of civil lawsuits seeking monetary damages.
backed believe corner economy itself management sole using
We believe that Oracle's management backed itself into a corner by using the economy as their sole explanation for their shortfall.
above business coming continued core expect fourth kicking pc quarter sales slightly third until weakness windows
With Windows 2000 revenues not really kicking in until 2001 and the continued weakness of the business PC sales impacting Microsoft's core business, we expect the fourth quarter to be lackluster, coming in slightly above the third quarter.
align both closely entire given investors judge judgment legal microsoft negative points possible proposals remedy spectrum stance suspect throughout toward view
Investors should view both the DOJ's and Microsoft's remedy proposals as the two end points in the spectrum of possible outcomes. However, given Judge Jackson's negative stance toward Microsoft throughout the entire legal proceeding, we suspect that the remedy judgment will more closely align with the government's proposal than Microsoft's version.
age appears behind best customer decisions emerging fallen formed kept microsoft position purchase secret technology
In this age of the Internet, with vendor alliances being formed and customer purchase decisions being made, it appears Microsoft has fallen behind in establishing its position in these emerging markets. Or, if it has, it's the best kept secret in the technology industry.
adopted believe bullish computing corporate next platform remain ultimately widely windows
We believe that Windows 2000 will ultimately be a widely adopted corporate computing platform over the next two years, and we remain bullish on Microsoft's prospects.
continues expansion expect form increased leverage lower margin marketing operating oracle sales trend
Oracle continues to be a margin expansion story and we expect that trend to continue this quarter. We expect the increased operating leverage to come in the form of lower sales and marketing expenses.