Microsoft president Steve Ballmer lambasted technology stock valuations, including those of his own company last week, in a talk to journalists at the third annual Technology Conference of the Society of American Business Editors and Writers (SABEW) in Seattle.
"There is such an overvaluation of technology stocks that it is absurd. I would include our stock in that category. It is bad for the long-term worth of the economy," the SABEW quoted Ballmer as saying in a statement issued last week.
When asked in a follow-up question what Microsoft's stock should actually be worth, the SABEW quoted Ballmer as simply replying "less".
Microsoft's stock price fell after Ballmer's comments. Microsoft's (MSFT) stock, trading on the Nasdaq Exchange, closed on Thursday at $US91.19 per share, down $US4.87 per share or 5.1 per cent from the previous day's close.
Ballmer was comparing the worth of technology stocks to the stock market as a whole, the press release said. Ballmer made his remarks in a question and answer session after his speech on "Microsoft's vision for the future".
The Nasdaq closed yesterday at 2749.83 points, a loss of 108.33, or 3.8 per cent of its total value. Technology stocks and stock markets in Europe and Asia also fell last week.
Japan's Nikkei 225 Index closed on Friday at 16,871.73 with a loss of 454.03 points. In Europe, by 9:35 GMT, London's FTSE 100 was down 40.6 points at 5929.1, Germany's Xetra Dax was down 103.29 points at 5196.28 and the Paris CAC was down 58.41 points at 404,542.83. http://www.microsoft.com