Next earnings will tell the truth. M$ is accumulating for one of two reasons. 1. employee stock options. 2. inflate profitability so next quarter it'll be hard to tell they're hurting (fewer shares + less earnings = same EPS).
But hey, you idiots don't know the difference. "I buy MSFT, ug. MSFT goes up, ug. I sell, ug yay. MSFT goes down, ug. I buy, ug. MSFT goes up, ug..." On and on and on.
The stock option thing is funny. "Hey, great job. Things are lookin up (stock price is at $37). Here's some stock options." Two months later it tanks. M$ doesn't care because liability is calculated by taking current market price less grant price (cool little accounting trick, psych). Knowing Ballmer (thug that he is) he proabaly calls up Trump and laughs his ass off on that crap. "Steve, people don't know this about you, but you are one funny guy. Hey, can you send a couple of those Redmond hookers over here by 7 my time?" Ballmer replies, "Damn Donald, you're gonna turn into one big Viagra pill if you don't stop that crap, you know that right?" Boisterous laughter ensues.
Wow, I just realized something. I must be a real buzz kill to any M$ employee reading this stuff. Oh well, maybe you'll make enough to jump ship, get pissed, and cross over to "the dark side" some day.
With the buyback, the street will be willing to push pps to a forward PE above 13. But resistence is likely once EV/EBITDA goes above 10. So resistence at about 31.58 between now and the next earnings report, so long as the whole market trades at worst sideways. If the market's momentum is strongly negative, even the buyback won't move traders into equities.
I have seen this kind of price action before.It is so familiar. The stock is being accumulated by the institutions. Then on a good market day it will skyrocket. MSFT must be buying back hand over fist 'cause they know they won't get this back that cheap.