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Comment by pearjuice | Hacker News Reader

Recovery of what exactly? Just because a bunch of mid-twenties think Microsoft isn't hip anymore doesn't mean Microsoft is somehow slowly collapsing. They are still making billions in profits, their stock is climbing and all of their platforms are rising in popularity.

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This bunch of 'mid-twenties' is probably gonna drive your future growth for the next 10-20 yrs, and probably the next generation after that as well (think their kids).

Think why Whatsapp/Facebook is really valued at such 'billions' of dollars? They are going to have user-engagement for a decades!

I am not disagreeing with your point, but lots of tech companies target this 'mid-twenties' and 'early-thirties' bunch, at least today.

To be specific, their sales have never stopped climbing, and their profits are sitting near all-time highs ($22 billion in profit last fiscal year).

The only reason this is a popular topic right now, is because the stock is at $50, thanks to the stock market bubble. The CEO had absolutely nothing to do with that. That's purely multiple expansion, not earnings growth. Apple is currently enjoying the same exact multiple expansion, which has pushed its stock back up despite zero earnings growth since fiscal 2012.

>That's purely multiple expansion, not earnings growth.

Where do you see "multiple expansion" and "no earnings growth"?

MSFT:

  Year  ~P/E    EPS

  2010  20.24  $2.10

  2011  12.09  $2.69

  2012  9.70   $2.00

  2013  14.50  $2.58

  2014  13.94  $2.69

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