When Microsoft reports its third-quarter earnings tomorrow, expect renewed debate over whether the company still deserves its designation as a growth stock.
Detractors will point to the fact that its next big new product, Windows Longhorn, won"t arrive until 2006. While I"m hardly a Microsoft cheerleader, I do think the company has quite a few more surprises in store. For my money (though I don"t have any investments in Microsoft), the company"s formidable research and development budget gives it ample claim to growth status. Despite its massive R&D operations, Microsoft is often chided for unveiling "me too" technology, advances that merely catch up to the market.
But I"m watching a development from Redmond"s Windows Media labs that"s scheduled for public unveiling in July. If you"re a Microsoft investor -- or a fan of (or investor in) digital-music services -- you"ll want to pay close attention as well. The technology is called Janus, and it could significantly alter the existing digital-music market.