techtonic, it looks like the entire market is slammed with MSFT problems. -Mephisto
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"The Nasdaq and the S&P 500 are weighted indexes, with the largest companies exerting the heaviest influence, so Microsoft's woes hurt those indexes more than the Dow, which values all of its 30 components equally.
News reports today said the Justice Department envisions Microsoft, as part of the penalty in its antitrust case, as being forced to split off its Windows operating system from the rest of the company.
The remainder of Microsoft possibly then would be split in two, with one company handling applications software and the
other the company's Internet business, including browser software.
This week, the government will its proposed remedies this week to a federal judge in Washington who has already ruled
that Microsoft engaged in illegal activity to preserve its monopoly.
"The fear of the unknown is hurting Microsoft,' said Brian G. Belski, chief investment strategist at George K. Baum & Co.in Kansas City, Mo. "Money managers don't want to be left holding the bag if Microsoft stock has further to fall."
Microsoft's shares also came under pressure after investment banks Goldman Sachs and SG Cowen cut their ratings on the
stock. Last week, Microsoft revealed in its earnings report that revenue grew less than expected due to slowing personal
computer sales. |
