Market Wrap-up: Tech Stocks Get Battered - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

Market Wrap-up: Tech Stocks Get Battered

Technology stocks took a beating for the second time in a week, even though tech companies continued to report better-than-expected second-quarter earnings.

The Dow Jones industrial average declined 33.56 points, or 0.3%, to 10,969.22. The technology-laden Nasdaq Composite, however, dove 77.32 points, or 2.8%, to 2,684.45

Virtually every benchmark computer-related issue declined. Microsoft (MSFT) lost 3 5/8 to 91 1/16; IBM (IBM), 4 11/16 to 124 5/16; Sun Microsystems (SUNW), 3 1/2 to 67 3/16; Hewlett-Packard (HWP), 7 7/16 to 105 1/8; Oracle (ORCL), 1 7/8 to 36 1/4; Lucent Technologies (LU), 1 7/8 to 68 1/4; EMC (EMC), 3 1/8 to 60 3/16; and Cisco Systems (CSCO), 1 15/16 to 61 1/8.

Supply-chain software vendor i2 Technologies (ITWO) plunged 10 11/32, more than 24%, to 32 1/8 after Prudential Securities cut its rating on the stock to "hold" from "accumulate." Yesterday, i2 announced second-quarter revenue of $131.4 million, a 57% increase from the same period last year. Net income in the second quarter of 1999 was $8.5 million, or 11 cents per share, compared with $600,000, or 1 cent per share, in the second quarter of 1998. Both periods included acquisition-related charges.

Another big loser was Compuware (CPWR), which was cut to "buy" from "strong buy" by both CS First Boston and SG Cowen today. Its stock declined 6 7/8 to 26 3/4. The developer of productivity-enhancing systems yesterday reported record first-quarter revenues of $443.1 million, an increase of 30.8% from $338.6 million during the same quarter last year. Income from operations grew 64.2% to $135.9 million from $82.8 million in the first quarter of the previous fiscal year. Peter Karmanos Jr., the company's chairman and CEO, said the latest results "continue to support a 35% to 40% growth estimate for fiscal year 2000."

Internet book retailer Amazon.com (AMZN) plunged 18 7/16 to 107 as investors expressed concerns about the company's aggressive spending plans for its Web sites. After markets closed Wednesday, Seattle-based Amazon.com reported a pro forma net loss of $82.8 million, or 51 cents per share, compared with a pro forma net loss of $17 million, or 12 cents, a year before. Sales nearly tripled to $314.4 million.

One of the only winners among technology stocks today was Legato Systems (LGTO), which rose 4 5/16 to 78 7/8. The enterprise storage-management company yesterday announced record second-quarter revenue of $62 million, an increase of 65% over last year's second quarter. Net income, excluding merger-related costs, increased 242% to $12.5 million, from $3.7 million in the same fiscal period of 1998.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
News
COVID-19: Using Data to Map Infections, Hospital Beds, and More
Jessica Davis, Senior Editor, Enterprise Apps,  3/25/2020
Commentary
Enterprise Guide to Robotic Process Automation
Cathleen Gagne, Managing Editor, InformationWeek,  3/23/2020
Slideshows
How Startup Innovation Can Help Enterprises Face COVID-19
Joao-Pierre S. Ruth, Senior Writer,  3/24/2020
Register for InformationWeek Newsletters
Video
Current Issue
IT Careers: Tech Drives Constant Change
Advances in information technology and management concepts mean that IT professionals must update their skill sets, even their career goals on an almost yearly basis. In this IT Trend Report, experts share advice on how IT pros can keep up with this every-changing job market. Read it today!
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll