SEATTLE (Reuters) - Microsoft Corp. (Nasdaq:MSFT - news) President Steve Ballmer Thursday said valuations on technology stocks have reached ''absurd'' levels, and even his own company's shares may be overvalued.

``There is such an overvaluation of technology stocks, it is absurd,'' Ballmer said to a group of journalists here at a technology conference being given by the Society of American Business Editors and Writers. ``I could put our own company and others in that category.''

Ballmer's comment came in response to a question about which stories are undercovered by the business media.

Asked then what Microsoft's stock price should be, he said, ''less.''

``I used to believe in the theory of perfect markets, but I no longer believe that,'' he added.

Microsoft shares were off $4 at $92.06 in late-afternoon trading on the Nasdaq market.

Ballmer's presentation to business writers included a general overview of Microsoft and the growing importance of the Internet in its future business strategy. He said he saw the office software business evolving to a service model in which users would take only certain features over the Internet.