The Buzz

All markets and investing news all the time

Microsoft plunges 11%, worst day since 2009

July 19, 2013: 4:01 PM ET

Shares of Microsoft tumbled Friday following a huge earnings miss.

It was a bloody day for technology stocks on Wall Street, as investors punished the entire sector after Google and Microsoft both delivered disappointing earnings results.

Microsoft (MSFT) took the worst beating, plunging more than 11% -- its worst one-day drop since January 2009. The company badly missed Wall Street's profit forecasts after taking a huge write-down on its Surface tablet last quarter.

That bad news as was a hot topic among traders on StockTwits, with some speculating that more pain is on the way for Microsoft.

 Grazen
$MSFT - My concern is that another billion will be written off next quarter b/c RT tablet is still too expensive.

And the calls for ousting Microsoft CEO Steve Ballmer grew louder once again.

 obiwan92
$MSFT Come back, Bill! Ballmer is making a mess!

 flounder
Moving on to $MSFT, now. Is Ballmer still CEO? Well, then they suck, get out. Kidding. Long term bullish. Short term its a mess.

But some traders remained optimistic, noting that Surface sales could improve as Microsoft releases updated versions.

 Dallen
$MSFT What's the mystery about poor Surface sales? Everyone knows you DON'T Buy$MSFT 1st generation, you wait for the fixes in 2nd or 3rd. Bullish

Other pinned their hopes on the company's Xbox One video game console.

 SMU_Trader
$MSFT Xbox one should be a big product in Q4 and next year, any thoughts?

 JayMcGill
$MSFT is only a buy on dip if you believe new Xbox can carry the load moving forward. Otherwise no deal. Balmer is untrustworthy.

Google (GOOG) shares were also lower Friday, but investors weren't nearly as frustrated with the search giant's miss. The stock declined less than 2%. In fact, after hitting a three-week low within the first 15 minutes of trading, the stock began to trim its losses.

 Partridge
$MSFT this is not a falling knife but a sword... $GOOG is a different story though

 Gballer
$GOOG is too big to fail. Obviously.

 PMMG
$GOOG is really loved, with this miss and this loss. with $APPL this miss would mean 20% drop

In fact, Apple (AAPL), which reports earning next week, was down more than 1%, as it declined alongside the rest of the tech sector.

 CapCrunch
$GOOG Traders selling $AAPL to buy GOOG on sale. #pretzellogic

 StuartKats
Looks like $GOOG is bullet proof, not sure i would want to be long $AAPL heading into earnings, sentiment trumps fundamentals

While the comparisons between Google and Apple mostly came down in favor of Google, one trader suggested that perhaps Google investors should take a lesson from Apple's recent slide. The stock dropped a whopping 45% from the all-time high in September through mid-April. Apple shares have since begun to recover, but remain a sizable 40% below the record high.

 kiksbutt
$GOOG people still chasing bubbles, no one learned from $AAPL

Join the Conversation
Fear & Greed
Sponsored by
About This Author
Hibah Yousuf
Hibah Yousuf
Reporter, CNNMoney

Hibah Yousuf is a reporter at CNNMoney, where she covers stocks, bonds, commodities and currencies trading across the globe, as well as corporate earnings and other markets-related news. Prior to joining the site in 2009, she interned at Money Magazine.

To view my watchlist

Not a member yet?

Sign up now for a free account
Stupid Stock Move of the Day
#StupidStock Moves of the Day! Ebola is scary. But airline sector sell-off is overly emotional. Nothing to suggest people will stop flying.
Powered by WordPress.com VIP.
Follow

Get every new post delivered to your Inbox.

Join 242 other followers