MSFT - not the high-growth story it was
MSFT is not the monster growth stock it was during the 1990s, and it is unlikely to demonstrate that level of growth again. With no fewer than nine price-driving stock splits since going public in 1987, Microsoft has been a substantial wealth generator. On October 21, 2002, shortly after Microsoft reported its blow-out quarter (resulting almost entirely from a switch to a licensing model for its software sales) I wrote on thestreet.com's Real Money Pro site that Microsoft would begin to encounter hurdles that would delay, and perhaps even curtail, long-term outperformance; And that those earlier high-growth days appear to be history for Microsoft. The PC explosion during the 1980s and 1990s was a one-off growth opportunity in this sector. While similar growth opportunities may materialize for Microsoft in other areas of tech in the years ahead, I'm not holding my breath. Previously, to make money in MSFT stock you just had to buy and hold, unless you bought at around a split-adjusted $120 between end-1999 and end-2000. The price has since steadily eroded to the $23-$30 range where it continues to trade.
