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.
And the calls for ousting Microsoft CEO Steve Ballmer grew louder once again.
But some traders remained optimistic, noting that Surface sales could improve as Microsoft releases updated versions.
Other pinned their hopes on the company's Xbox One video game console.
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.
In fact, Apple (AAPL), which reports earning next week, was down more than 1%, as it declined alongside the rest of the tech sector.
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.
Forget Windows. The future of Microsoft (MSFT) is in its enterprise software business and the cloud, said Jeffrey Ubben, founder and CEO of activist hedge fund ValueAct Capital.
In fact, Ubben believes in Microsoft so much that he's taking a stake in the firm that's "within spitting distance" of $2 billion.
The news sent shares of Microsoft up nearly 5%.
"We see Microsoft's consumer strategy challenges and say who cares," said Ubben, MOREMaureen Farrell - Apr 22, 2013 3:11 PM ET
Running the fiscally challenged state of California might have been an easier task for Meg Whitman than trying to turn around Hewlett-Packard.
That's what she would be doing right now if she hadn't lost the Golden State gubernatorial race to Jerry Brown in 2010. Alas, she has to "settle" for the more lucrative but arguably more thankless job as CEO of troubled HP.
Hewlett-Packard (HPQ) shares are down nearly 25% this year, MOREPaul R. La Monica - Jun 27, 2012 1:00 PM ET
Dell (DELL) is a disaster. Hewlett-Packard (HPQ) is expected to report a massive round of layoffs and more disappointing financial results after the bell. The PC is quickly becoming irrelevant in the eyes of investors as tablet mania rules the land.
So why is Microsoft's (MSFT) stock up nearly 15% year-to-date, making it the fifth best performer in the Dow Jones industrial average? A lot is riding on Microsoft's upcoming MOREPaul R. La Monica - May 23, 2012 8:31 AM ET
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