Microsoft Shows Why It's Still Tech Heavyweight Champ

Illustrating once again why it is one of Wall Street's all-time go-to names, software giant Microsoft(MSFT Quote) said Wednesday it will beat previous revenue projections despite the ailing economy.

The company announced after the closing bell Wednesday that it would post fiscal fourth-quarter revenue of $6.5 billion to $6.6 billion, up from previous guidance of $6.3 billion to $6.5 billion. Wall Street analysts were expecting the company to show revenue of $6.46 billion, according to Thomson Financial/First Call.

But the company also said it planned to post a $2.6 billion net investment loss due to writing down weakened investments in the beleaguered cable and telecom areas. In May 1999, Microsoft pumped $5 billion into AT&T(T Quote), an investment that has since cratered along with the floundering communications company's stock, which is off 56% since that time. With that charge, Microsoft said its actual earnings would be only a penny per share. ...