By Sue Chang, MarketWatch
SAN FRANCISCO (MarketWatch) -- Microsoft Corp. is expected remain in the spotlight on Monday as investors assess whether to extend the Ballmer bounce -- the best one-day gain in four years on the news CEO Steve Ballmer planned to retire within the next 12 months.
The decision for Ballmer to retire was more sudden than was depicted by the company in Friday's announcement, according to AllThingsD, who cited sources close to the situation.
Microsoft's stock (MSFT) surged 7.3% on Friday, its best daily percentage gain since April 2009.
The company's stock dipped 0.4% in premarket trading Monday.
The market's euphoric reaction to the news underscores growing frustration over Ballmer's leadership as revenue growth stagnated in the past couple of years.
In July, Microsoft reported fourth-quarter earnings of $4.97 billion, or 59 cents a share, and revenue of $19.9 billion. On an adjusted basis, the software giant would have earned 52 cents a share, far short of 75 cents a share forecast by analysts in a FactSet survey.
"In our view, the new CEO faces a daunting task of making the company's Windows franchise relevant in the post-PC era, with the confinement of a major reorganization that was just announced," said Yun Kim at Janney Capital Markets in a note.
Meanwhile, two companies' moves Sunday resulted in gains during premarket trading.
Amgen Inc.(AMGN) reached a deal Sunday to buy another biotech company, Onyx Pharmaceuticals Inc.(ONXX) , for roughly $10.4 billion, an amount below what investors expected. Shares of Amgen gained more than 5% in premarket trading.
Anadarko Petroleum Corp. (APC) on Sunday agreed to sell its 10% stake in a Mozambique offshore natural-gas field for $2.64 billion in cash. Shares of Anadarko rose more than 3% in premarket trading.
-Sue Chang; 415-439-6400; AskNewswires@dowjones.com
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(END) Dow Jones Newswires
08-26-13 0852ETCopyright (c) 2013 Dow Jones & Company, Inc.
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