Chris Shilakes Continue Quotations

We are leaving our fiscal 2001 estimates and $87 12-month price objective for Microsoft materially unchanged, following fourth-quarter results that were largely devoid of the drama of the past two quarters. Nonetheless, 'caution' remains the operative word from Microsoft management, as continued choppy monthly unit demand from business PCs and a deliberate, gradual ramp from Windows 2000 platforms and related applications hinders near-term growth.

These stellar results should continue the upswing in e-commerce software stocks on a positive start to earnings season.

We expect Oracle could appreciate at a more tempered rate over the intermediate term as fourth-quarter ... license revenues were muted by sluggish database growth, with strong earnings-per-share upside on continued margin expansion.