MS/DOJ - Microsoft ruling sends Nasdaq on wild ride

The technology-heavy Nasdaq lost more than 570 points before rebounding in the afternoon to close at 4,149, down 75 points. The Dow Jones exchange yesterday closed at 11,175, down 47 points. Yesterday, Nasdaq dropped 349 points in expectation of the Microsoft ruling.

Microsoft shares dropped yesterday to US$88.7, a loss of $3 per share equivalent to a 3.3 percent decline in value. Yesterday, the software giant's shares closed at $90.87, a $15.3 decline, or a fall of 14.5 percent.

Despite the volatile nature of the market, one analyst yesterday said technology stocks are still strong.

"It seems as if the Microsoft ruling was one of many reasons why investors were selling," Sam Stovall, an investment strategist with Standard & Poors, said in a phone interview. "Valuations (of stocks) are high in general, and investors were taking profits after the first (calendar) quarter. It became a cascading effect."

Other investors with unrealistic expectations sold off in a panic, Stovall added. "There were people who bought expensive stocks with high growth expectations," he said. "They were day traders and gamblers who bailed out when they saw an erosion of prices."

Standard & Poors still rates the technology sector as strong, designating more than 40 technology company stocks as a "buy," he said.

"There is still value in technology stocks that have earnings, like IBM, Cisco and Sun," Stovall said.

Cisco Systems stock closed yesterday at $73.1, up 18 cents, or 0.26 percent; IBM was at $121, up 87 cents, or 0.72 percent; and Sun Microsystems ended the day at $26.5, down $1.19, or 4.29 percent.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Jack McCarthy

PC World
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?