Windows 8 will drive Microsoft stock price up by $8 says prominent analyst

Windows 8 may be getting mixed reviews from those who have used it, but a prominent stock analyst believes that the upcoming operating system, by itself, will add a full $8 to Microsoft's stock price.

The site Seeking Alpha notes that Microsoft's stock price has already climbed 30% since the beginning of the year. Despite that rise, however, the site believes that Microsoft's stock price will be spurred even more -- to the tune of $8 per share -- when Windows 8 is released.

The site concludes:

For Microsoft, it seems that the stars are once again beginning to align perfectly for a second act -- a lot of which has to do with its flagship operating system. This time, it's with the soon to be released of Windows 8 -- an event that I think will immediately add $8 to the company's share price.

The site's reasoning is simple: Windows 8 was built with mobile devices in mind, mobile is where the growth it, and so the company has focused on its greatest growth opportunities.

Simple is the key word here...so simple, in fact, that I'd dismiss the site's conclusion. How much additional revenue is that $8-per-share estimate based on? The site doesn't say. How much additional mobile market share is the estimate based on? Again, there's no answer. Does the estimate take into account that some people may be so put off by the radically changed interface, they may switch from Windows PCs to Macs when they buy their next computer? Again, no answer.

Windows 8 will clearly help Microsoft in the mobile marketplace. But to the tune of $8 a share? You may as well pick any number out of a hat, because it would be as good an estimate as that.

FREE Computerworld Insider Guide: Five IT certifications that won’t break you
Join the discussion
Be the first to comment on this article. Our Commenting Policies