CFLT - Microsoft Adobe among standouts in Morgan Stanley's 'gut check' look at software

When it comes to investing, there's always a fine line between risk and security. And few areas provide the promise of big gains, but also along with big risk, as the tech sector. That can be seen in a recent assessment of opportunities among software companies by analysts at Morgan Stanley. Led by analyst Keith Weiss, the analysts had a "gut check" look, and suggest that focusing on companies that are "core franchises" that have reasonable values may be the best way to approach the software sector for the immediate future. "Year-to-Date, the overall software group average stock performance well under-paces the broader indexes," Weiss wrote, noting that the Nasdaq Composite (COMP.IND) is up by about 17%, and the S&P 500 (SP500) has risen around 21% this year. Weiss said that there remains "a large bifurcation" between large cap software companies with valuations of at least $20 billion, which are

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Microsoft, Adobe among standouts in Morgan Stanley's 'gut check' look at software