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Microsoft Trial and the Effect on the Dow?
NNland asks: "What's kinda neat is that Red Hat stock prices went up $18 yesterday. The idea that the MS trial has pushed people towards investing in MS's competitors has surfaced, but with a drop in price of merely $1.26, this could be a bit questionable. Though when you take into consideration the fact that there is probably alot more MS stock on the market, it brings up the question of whether or not the amount of money lost on MS stock is close to the amount that Red Hat gained. What do you people think? I tried to get hard numbers, but I was having problems wading through the numbers. " Now that would be one hell of a correlation if it were true (although I doubt it). Does anyone have any hard numbers?
RHAT gained about $1.24 billion in market valuation yesterday. But MSFT lost a little more than $6 billion. Obviously, as a percentage of total valuation (MSFT is around $460 billion), RH gained much more, but as far as money shifting, a lot more left MSFT yesterday than went into RHAT.
"You can never have too many elephants on your team."
The volume on monday for MSFT was pretty impressive. That says one of two things to me, for all the spooked people dumping MSFT stock, there were people who think this is a good buying oppurtunity. Or, MSFT was repurchasing its own stock, to prevent a signifigant dip, which would spook investors even more, which would cause a larger dip, etc. With the percentage of employees whose time is compensated primiarly with stock, they can't afford to let their price tank.