On January 26, software giant Microsoft Corp. (Nasdaq: MSFT) announced a disappointing quarter that sent Microsoft stock reeling by 10% on three times its normal trading volume.
It was the second major technology "miss" Wall Street had to digest in the last week's time, coming after a disastrous earnings release by IBM Corp. (NYSE: IBM).
In view of both Microsoft and IBM's earnings difficulties, questions arose about whether the "Big Tech" sector is in trouble...
... And just as importantly, is "Mr. Softy" the victim of the tech sector's difficulties, or is it simply muddling through some tough times?
The answer is actually quite simple if you know how to read the most important signs in the two tech giants' earnings reports and invest accordingly.