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  Microsoft shares drop on PC worries
Time: 04:59 EST/09:59 GMT | News Source: News.com | Posted By: Will1

Microsoft shares posted their third-biggest one-day drop in a decade Thursday on concern that revenue at the world's largest software maker may be hurt by weak holiday sales of personal computers. Microsoft fell $7.69, or 12 percent, to $57.38. The shares have lost more than half their value this year. Other computer-related stocks also slumped, sending the Nasdaq composite index down 4 percent.

Gateway, the No. 2 direct PC seller, late Wednesday said disappointing holiday sales to consumers will cause fourth-quarter revenue and profit to be much less than forecast. Consumer products make up 20 to 25 percent of Microsoft's revenue, and the company released a new version of its software for consumers in September. That product, Windows Me, could be hurt by any slowdown in consumer PC sales.

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