Wait For Pullback In Microsoft (MSFT): Cross Research

Microsoft (NASDAQ: MSFT) reported F2Q results much ahead of expectations at $19 billion, backed by the selling of 60 million copies of Windows 7. The Windows Live segment grew over 21% on a seasonally adjusted basis compared to -11% last quarter while all other segments were either flat or down.

Cross Research believes that the stock has run up substantially due to the excitement and early results surrounding the Win7 launch and the slackening consumer buying could pullback the stock before the expected corporate refresh cycle. Correspondingly, it has reiterated a ‘Hold’ rating on the stock.