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Microsoft loses $20 billion in market cap following Q2 earnings

Microsoft loses $20 billion in market cap following Q2 earnings... .

TGD Staff July 24, 2009 1,010

New York (NY) – The stock market sent Microsoft’s stock 9% down following the company’s Q2 earnings release. The stock price dropped from yesterday’s close of $25.56 into the $23.30 neighborhood, shaving off about $20 billion from Microsoft’s market capitalization.

At the time of this writing, Microsoft stock was trading at $23.32, down $2.24 or 8.76%. Market capitalization was $207.5 billion, down from yesterday’s $227.4 billion. The rather dramatic reaction from the stock market comes one day after Microsoft announced that its fiscal fourth quarter revenue had dropped 17% to $13.10 billion and net income plunged by 29% to $3.05 billion.

For the entire fiscal year, Microsoft revenue was $58.44 billion, down 3% from the prior fiscal year, and net income was $14.57 billion, down 18%.