Microsoft sheds $10 b. on Jackson's findings

BANGALORE: Microsoft stocks plunged then rebounded on the NYSE, which resulted in $10 billion from being removed off the firm's market capitalization, attributed to the harsh court ruling.

Just after the opening on Monday the stock fell 7.3 per cent, with investors discouraged by Friday's finding by US district court judge Thomas P. Jackson that Microsoft was a competition-crushing monopolist and had harmed consumers. Initial losses were reduced and by the end of the session Microsoft shares were down 1.77 per cent from Friday's close.

Analysts said investors saw Microsoft's battle with the US justice department as far from over, with a favorable ruling on appeal still possible or even an out-of-court settlement. Monday's slide removed nearly $10 billion off Microsoft's market capitalization, which now comes to $462 billion. Industry experts said they expected Microsoft would instead face closer government scrutiny of its business practices, which would constrain growth but not eliminate it. Major brokerages described the drop in stock as a buying opportunity. Microsoft's competitors meanwhile benefited from the uncertainty surrounding its fate.