US court ruling clobbers Gates
Sunday 07 November 1999
US analysts were warning shareholders not to panic after the ruling against Microsoft, but even Microsoft officials appeared shocked at the severity of the ruling from Judge Thomas Penfield Jackson.
The share price plummeted during after-hours trading when news of the ruling was announced. Microsoft shares fell to 863/4, down from 919/16, reducing the value of the software giant by $25bn (pounds 15.4bn).
The ruling is expected to impact on the share price keenly when the US markets open on Monday, and will drag down the Dow Jones index, which Microsoft joined only a week ago, as well as the S&P 5000, where Microsoft is the largest constituent.
Over the past 24 hours, Microsoft shares have been on a rollercoaster ride, rallying at the end of Friday's trading and continuing to rise during initial after-hours trading.
Although the decision against Microsoft is expected to weigh down the broader stock market, analysts have been quick to point out that this is just the initial stage of the ruling, and are urging investors to think long-term.
"The ruling is not as harmful to Microsoft as it appears, but it is still disappointing and will set a negative tone in the market," said Art Hogan, chief market analyst with UK investment bank Jeffries & Co. Shares in Microsoft have risen 72 per cent in the past 12 months.
Though the ruling on Friday was only a finding of fact, with the action to be taken against Microsoft not known for at least another month, the tone of Judge Jackson's ruling made it seem like tough measures were on the cards. There is a widespread expectation that Microsoft may seek a settlement with the Justice Department.
- 1 Rarest Beanie Baby of them all could be sold for £62,500 on eBay
- 3 Driving while dehydrated can be just as dangerous as drink driving, study suggests
- 4 Farmer told to tear down mock-Tudor castle after hiding construction behind hay bales
- 5 One Direction: Louis Tomlinson launching his own record label, has already 'signed two acts'
Isis video purports to show beheadings and execution at gunpoint of 30 Ethiopian Christians and destruction of churches in Libya
Rarest Beanie Baby of them all could be sold for £62,500 on eBay
Professional big game hunter Ian Gibson crushed to death by elephant during hunt
Driving while dehydrated can be just as dangerous as drink driving, study suggests
Ben Affleck asked TV chiefs to hide slave-owning ancestry, new hacked Sony emails published by Wikileaks claim
If I’m being racially abused I don’t need a stranger with a saviour complex to rescue me
The only black face in the Ukip manifesto is on the page about overseas aid
Ukip is the only main political party to not address LGBT rights in its manifesto
Food banks: One million Britons will soon be using them, according to Trussell Trust
Religion isn't growing, it is becoming vigorous in its demise, says philosopher AC Grayling
BBC election debate: The one photo that summed up the whole 90-minute leaders debate
iJobs Money & Business
£20000 - £25000 per annum + OTE £45,000: SThree: SThree Group have been well e...
£50000 - £667000 per annum + excellent benefits : Ashdown Group: IT Manager / ...
£13000 - £20000 per annum: Recruitment Genius: Scotland's leading life insuran...
£40000 - £45000 per annum + benefits : Ashdown Group: Training Programme Manag...