Microsoft President Steve Ballmer yesterday lambasted technology stock valuations, including those of his own company, 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.
The SABEW asked Ballmer what Microsoft's stock should actually be worth. Ballmer simply said, "less."
Microsoft's stock price fell after Ballmer's comments. Microsoft's stock, trading on the NASDAQ Exchange, closed yesterday at $91.19 per share, down $4.87 per share 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 yesterday closed at 2749.83 points, a loss of 108.33, or 3.8% of its total value. Technology stocks and stock markets in Europe and Asia also fell.
Japan's Nikkei 225 Index today closed at 16,871.73 with a loss of 454.03 points. In Europe, by 9:35 GMT London's FTSE 100 down 40.6 points at 5,929.1, Germany's Xetra Dax was down 103.29 points at 5,196.28 and the Paris CAC was down 58.41 points at 40 4,542.83.