Biz Break: Apple vs. Google vs. Microsoft: Is the Windows era over?

Today: Microsoft stock falls after the tech behemoth reportsdisappointing sales of its flagship Windows software. Plus: MostSilicon Valley tech stocks fall, too, for reasons including adisappointing report on the economy and turmoil in Egypt.

Apple vs. Google vs. Microsoft

Microsoft shares plunged today after the Redmond, Wash., softwarebehemoth yesterday afternoon reported revenue for its most recentquarter that was up 5 percent from a year earlier, but profit thatwas slightly lower.

Notably, Microsoft reported $5.05 billion in revenue for itsWindows and Windows Live division -- below analysts' expectations of$5.2 billion, according to Bloomberg News and down from $7.2 billiona year earlier -- when Microsoft released its well-received Windows7 operating system, a bid for redemption after the much-malignedWindows Vista.

At least one analyst noted that a decline for Windows couldaffect other Microsoft flagships, particularly the company's Officesoftware.

"The execution at this company has actually been pretty good overthe last year," Loomis Sayles & Co. analyst Tony Ursillo, whose firmowns Microsoft shares, told Bloomberg News. "The stock has gottenvery little credit for it because the market is worried about thecontinued erosion of the Windows franchise and the potential erosionof the Office franchise."

On the bright side for Microsoft fans, the company boosted salesin businesses such as its entertainment and devices division -- homeof the Xbox video game console and new Kinect motion controller.

Here in Silicon Valley, Microsoft's biggest rivals are Apple --the Cupertino maker of Mac computers and "i" devices -- and Google -- the Mountain View Internet juggernaut. Both companies are behindoperating systems that are Windows rivals. Apple, of course, makesMac OS X and iOS software. Google, meanwhile, has found some successwith its Android operating system for mobile devices and is workingon its Chrome OS for desktop and notebook computers.

By some measures, Apple is now a bigger technology behemoth thanMicrosoft. Apple's total market value at the end of trading todaywas $309 billion, compared with $238 billion for Microsoft. Applehad more holiday quarter revenue: $26.7 billion vs. just under $20billion. Microsoft, though, was more profitable, at $6.6 billion vs.$6 billion.

Microsoft stock finished regular trading today at $27.76, down$1.11, or 3.8 percent, from Thursday's closing price. It was a grimday, though, for most tech stocks. Apple fell $7.16, or 2.1 percent,to $336.05. Google dropped $15.80, or 2.6 percent, to $600.99.

The economy

Hurting tech and other sectors on Wall Street was a disappointingreport on the health of the U.S. economy.

According to The Associated Press, the Commerce Department todayreported that the U.S economy grew at a 3.2 percent pace in thefourth quarter. While normally that would be considered healthygrowth, it was below the expectations of economists and investors --and also was too slow to make a significant difference in theunemployment rate.

Silicon Valley tech stocks

Down: Silicon Valley's 10 biggest tech stocks by market value --Apple, Google, Oracle, Intel, Cisco Systems, Hewlett-Packard, eBay,VMware, Gilead Sciences and Applied Materials -- all declined.

Investors also were concerned by the turmoil in Egypt, whereprotesters had been using Internet sites such as Facebook andTwitter to organize demonstrations. Today, the four companies thatcontrol online traffic into and out of the country abruptly shutdown access to the entire Internet, according to an AP report.

The tech-heavy Nasdaq composite index: Down 68.39, or 2.5percent, to 2,686.89.

The blue chip Dow Jones industrial average: Down 166.13, or 1.4percent, to 11,823.70.

And the widely watched Standard & Poor's 500 index: Down 23.20,or 1.8 percent, to 1,276.34.

Check in weekday afternoons for the 60-Second Business Break, asummary of news from Mercury News staff writers, The AssociatedPress, Bloomberg News and other wire services. Contact Frank Russellat 408-920-5876. Follow him at Twitter.com/mercspike.