Blog Post

Invest Like It’s 1998: Microsoft Stock Hits 10-Year Low, Down 30 Percent From First Yahoo Offer

Microsoft (NSDQ: MSFT) stock hit its lowest point in 10 years on Thursday — $18.74 — when the tech sector took hits from Cisco (NSDQ: CSCO) and Intel (NSDQ: INTC), before coming back to close at $21.25. (via AP) Meantime, Google (NSDQ: GOOG) enjoyed something of a rebound — relatively speaking — ending above $300 Thursday after hitting a three-year low the day before.

Much of the focus since Microsoft’s bid for Yahoo (NSDQ: YHOO) went sour has been on the latter’s disappearing value. (On Thursday, Yahoo’s stock closed at $11.15, at one point dipping below $10, a five-year low.) But consider what’s happened to Microsoft’s stock price since its dance with Yahoo began. It was at $30.45 when it first offered to buy Yahoo (for $31 a share) on Feb. 1. Could there be a much better time for a stubborn Steve Ballmer to switch back to acquisition mode?