07-26-2009, 06:46 AM
NEW YORK: Microsoft Corp shares plunged eight per cent on Friday, as ~its weaker-than-expected results contradicted Wall Street’s belief that the worst is over for the technology sector.
The drop shaved about $19 billion off Microsoft’s market value and it was the world No 1 software maker’s biggest single-day fall since January 2009, when its quarterly results had also missed expectations.
Some analysts said they were concerned that Microsoft showed weakness across all its business units, and questioned whether the company’s much-anticipated launch of a new Windows operating system could reignite growth later this year.
“While there are market indications that PCs and servers are beginning to stabilise, we do not anticipate a snapback in demand, despite the Windows 7 Oct launch, until 2010,” said Barclays Capital analyst Israel Hernandez. “In addition to cyclical exposures, we also believe that Microsoft faces longer-term challenges such as geographic mix issues, pricing pressures on Windows from netbooks, and heightened competitive pressures which are likely to continue to weigh on margins,” he said.
http://www.thenews.com.pk/daily_detail.asp?id=189947
The drop shaved about $19 billion off Microsoft’s market value and it was the world No 1 software maker’s biggest single-day fall since January 2009, when its quarterly results had also missed expectations.
Some analysts said they were concerned that Microsoft showed weakness across all its business units, and questioned whether the company’s much-anticipated launch of a new Windows operating system could reignite growth later this year.
“While there are market indications that PCs and servers are beginning to stabilise, we do not anticipate a snapback in demand, despite the Windows 7 Oct launch, until 2010,” said Barclays Capital analyst Israel Hernandez. “In addition to cyclical exposures, we also believe that Microsoft faces longer-term challenges such as geographic mix issues, pricing pressures on Windows from netbooks, and heightened competitive pressures which are likely to continue to weigh on margins,” he said.
http://www.thenews.com.pk/daily_detail.asp?id=189947