Linux Today: Linux News On Internet Time.
Search Linux Today
Linux News Sections:  Developer -  High Performance -  Infrastructure -  IT Management -  Security -  Storage -
Linux Today Navigation
LT Home
Contribute
Contribute
Link to Us
Linux Jobs


Top White Papers

More on LinuxToday


The Register: Is MS heading for a share price meltdown?

Mar 07, 2000, 16:35 (4 Talkback[s])
(Other stories by Graham Lea)

"The last 12 months has seen the Dow Jones industrial average rising just over 4 per cent while the NASDAQ composite index has doubled. In the same period, Microsoft's share price has gone up just 23 percent, and so is seriously underperforming in the high-tech market."

"Thoughts are increasingly turning to the question of whether there will be meltdown in the share price if Microsoft has a bad quarter. Many investors will certainly have an exit strategy in the form of a stop-loss sell order on their holdings, and once these begin to be triggered, a dramatic fall is a serious possibility."

"The evidence to hand suggests that any such fall would not greatly upset NASDAQ companies unless they had a high reliance on Microsoft. However, with Microsoft now being a component of the Dow, the chances are that the Dow would be dragged down to below levels of a year ago. In looking for a target for their wrath, it would be hardly surprising if the financial analysts did not decide that the clay pigeon was Microsoft, and dumped their Microsoft holdings."

Complete Story

Related Stories: