Obviously you are not well versed in Antitrust law. MSFT broke the law with predatory practices. They were fouind guilty of this, and there will be a penalty. When the irrational exhuberance of the court's decision wears off, I guarantee that MSFT will be trading down again. When the new court rules, depending on the decision, the stock will adjust once again. This assumes that the states aren't successful in skewering the company.
You are right, I am not well versed in antitrust law. However, I do realize that politics can very much come into play, which we are observing right now, and the big money that supported Bush will negotiate some sort of settlement with undoubtedly some concessions not in MSFT's favor, but overall, the result will be far less drastic than splitting the company up. Concessions without giving up the freedom to create their product as they wish, in the form of a settlement will more than likely be the punishment.
I still look for MSFT to be an excellent investment for those of us with a long term horizon. I like companies with no debt and billions in cash....I will hold.