Microsoft Slips on Analyst Comments

By TSC Staff ,

Updated from 9:16 a.m.

Microsoft

(MSFT) - Get Report

was down 1.8% in midmorning after

Salomon Smith Barney

analyst Richard Gardner fueled rumors that Microsoft

might warn on earnings, saying in a research note the company could miss the fourth-quarter consensus estimate of 42 cents a share a modest 1 or 2 cents.

On Saturday, the software giant said it failed to reach a deal with

AOL

(AOL)

on a pact to include AOL's Internet service with the next generation of the Wndows operating system, replacing an agreement that expired in January.

According to

Reuters

, weeks of talks recently failed over legal issues and disagreements on instant messaging and digital media. AOL was down 1.8%.

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