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Microsoft (MSFT +1%) is ticking higher ahead of today's FQ2 report. Its valuation is low going...

Microsoft (MSFT +1%) is ticking higher ahead of today's FQ2 report. Its valuation is low going in - less than 7x FY13E EPS exc. cash - but as Apple and Intel can vouch, that doesn't guarantee a smooth ride. A lot of Windows 8 pessimism seems priced in - the market's response could hinge on Microsoft's expectations for Office 2013, which is about to launch with a heavy focus on subscriptions, and the performance of Server & Tools, which has been growing rapidly and is in the midst of a giant refresh.
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