Microsoft, Cisco, VMware and other publicly traded technology stocks weren't immune to the troubled economy. More than one-third of publicly traded technology vendor and solution providers saw their stock values tumble more than 51 percent in 2008.Wall Street closed out 2008 with a 100-point gain, but nothing could save
technology stocks. In 2008, the leading technology vendors saw double-digit
losses, with 30 percent of the companies seeing losses greater than 51
percent.
Nortel (NYSE: NT) has watched its stock drop from $14.95 to $0.26 in the
last 12 months and is on notice from the New York Stock Exchange (NYSE) to be
delisted if it cannot raise the stock above $1.
BT Global Services (NYSE: BT) was also down 97 percent. In 2008, the
stock opened at $53.16 and closed the year at $1.35. The company’s stock was
recently downgraded by JPMorgan.
ManTech International (NASDAQ: MANT) was
the year's big winner, up 28 percent. NTT
Data (NYSE: NTT) closed up 9 percent,
Affiliated Computer Services (NYSE: ACS)
finished up 5 percent, and Perot Systems (NYSE: PER)
finished up 3 percent for 2008.
A closer look at a few of these stocks by technology included the following
summaries:
Laser Printers
If only color laser printers could print money. Xerox (NYSE: XRX)
lost 50 percent of its stock value to close 2008 at $7.97. Lexmark
International (NYSE: LXK) and
Hewlett-Packard (NYSE: HPQ) were both down a
mere 20 percent.
Direct Market Resellers
The online marketers took a beating in 2008. Insight Enterprises (NASDAQ: NSIT)
was down 61 percent to close at $6.90. PC Mall (NASDAQ: MALL)
and PC Connection (NASDAQ: PCCC) finished
the year down 54 percent at $4.01 and $5.12, respectively.
Distributors
Among the big technology distributors, Tech Data was the loss leader. Its stock
was down 52 percent for the year. Arrow Electronics (NYSE: ARW)
tumbled 51 percent, Synnex (NYSE: SNX) dropped 40 percent, and Ingram Micro
(NYSE: IM) fell 24 percent.
Bellwethers
The big IT vendors were not immune to market volatility. Despite relatively
healthy sales, revenues and cash reserves, many of the big hardware and
software vendors posted significant year-over-year losses.
Despite billions of dollars in cash reserve and a healthy recurring software
licensing revenue stream, Microsoft (NASDAQ: MSFT)
saw its stock tumble nearly 45 percent in 2008. Its failed bid to acquire Yahoo
and troubles with the Vista operating system didn’t help
bolster perceptions among traders.
Cisco Systems (NASDAQ: CSCO) continues to
pump out new initiatives in networking, voice/telephony, security and
telepresence. Nevertheless, the networking market leader saw its stocks fall
nearly 39 percent last year.
After a decade of near flawless performance, Google’s armor was kinked by
the troubled economy. After hitting highs above $700 per share, the search
engine giant saw its stock value plummet 55 percent in 2008.
Dell couldn’t reverse its sagging fortunes by re-entering the channel in
2008. The computer and server manufacturer saw its stock price fall 55 percent
year over year. The good news for Dell: Channel revenues continue to increase
as thousands of solution providers sign up for its program.
And despite the continued frenzy over virtualization, VMware couldn’t escape
the receding tide. Knocked around by the sudden departure of its CEO
and founder Diane Greene and speculation over the impact Microsoft’s Hyper-V
will have on its business, VMware’s stock spiraled 72 percent year over year.
The following is the year-over-year stock performance for the leading
publicly traded technology vendors and solution providers.
|
Leading Technology Vendor Stocks |
| Company |
Jan. 1, 2008 |
Dec. 26, 2008 |
Difference |
| Adobe Systems (ADBE) | 36.03 | 21.29 | -40.90% |
| Adtran (ADTN) | 20.92 | 14.88 | -28.90% |
| Alcatel-Lucent (ALU) | 7.25 | 1.53 | -78.90% |
| AMD | 7.14 | 2.16 | -69.70% |
| Apple (AAPL) | 194.84 | 85.35 | -56.20% |
| Arrow Electronics (ARW) | 38.8 | 18.84 | -51.40% |
| Avnet (AVT) | 34.62 | 18.21 | -47.40% |
| BMC Software (BMC) | 34.7 | 26.91 | -22.40% |
| CA | 24.55 | 18.53 | -24.50% |
| Canon (CAJ) | 45.72 | 31.4 | -31.30% |
| Check Point (CHKP) | 21.87 | 18.99 | -13.20% |
| Cisco Systems (CSCO) | 26.54 | 16.3 | -38.60% |
| Citrix Systems (CTSX) | 38.05 | 23.57 | -38.10% |
| Data Domain (DDUP) | 26.01 | 18.8 | -27.70% |
| Dell | 24.39 | 10.24 | -58.00% |
| EMC | 18.02 | 10.47 | -41.90% |
| FalconStor (FALC) | 10.74 | 2.78 | -74.10% |
| Google (GOOG) | 685.19 | 307.65 | -55.10% |
| HP (HPQ) | 45.65 | 36.29 | -20.50% |
| IBM | 104.69 | 84.16 | -19.60% |
| Ingram Micro (IM) | 17.8 | 13.39 | -24.80% |
| Intel (INTC) | 25.35 | 14.66 | -42.20% |
| Juniper Networks (JNPR) | 32.1 | 17.51 | -45.50% |
| Lexmark (LXK) | 33.94 | 26.9 | -20.70% |
| McAfee (MFE) | 35.79 | 34.57 | -3.40% |
| Microsoft (MFST) | 35.22 | 19.44 | -44.80% |
| Motorola (MOT) | 16.07 | 4.43 | -72.40% |
| NetApp (NTAP) | 24.62 | 13.97 | -43.30% |
| Nokia (NOK) | 37.4 | 15.6 | -58.30% |
| Nortel Networks (NT) | 14.95 | 0.26 | -98.30% |
| Novell (NOVL) | 6.68 | 3.89 | -41.80% |
| Oracle (ORCL) | 22.49 | 17.73 | -21.20% |
| Polycom (PLCM) | 26.94 | 13.51 | -49.90% |
| Rackspace (RAX) | 10.01 | 5.38 | -46.30% |
| Red Hat (RHT) | 20.71 | 13.22 | -36.20% |
| Research in Motion (RIMM) | 113.71 | 40.58 | -64.30% |
| Salesforce.com (CRM) | 60.98 | 32.01 | -47.50% |
| SAP | 50.73 | 36.22 | -28.60% |
| ScanSource (SCSC) | 32.03 | 19.27 | -39.80% |
| Seagate Technology (STX) | 24.44 | 4.43 | -81.90% |
| Sun Microsystems (JAVA) | 17.42 | 3.82 | -78.10% |
| Sybase (SY) | 24.63 | 24.77 | 0.60% |
| Symantec (SYMC) | 16.06 | 13.52 | -15.80% |
| Synnex (SNX) | 19.03 | 11.33 | -40.50% |
| Tech Data (TECD) | 37.2 | 17.84 | -52.00% |
| VeriSign (VRSN) | 37.17 | 19.08 | -48.70% |
| VMWare (VMW) | 84.6 | 23.69 | -72.00% |
| Websense (WBSN) | 16.84 | 14.97 | -11.10% |
| Xerox (XRX) | 15.82 | 7.97 | -49.60% |
| | | | |
|
Leading Solution Provider Stocks |
| Company |
Jan. 1, 2008 |
Dec. 26, 2008 |
Difference |
| Accenture | 36.06 | 32.79 | -9.10% |
| Acxiom | 11.15 | 8.11 | -27.30% |
| ACS | 43.61 | 45.95 | 5.40% |
| Atos Origin | 27.95 | 17.92 | -35.90% |
| ADP | 43.22 | 39.34 | -9.00% |
| BT Global Services | 53.16 | 1.35 | -97.50% |
| CACI | 43.14 | 19.98 | -53.70% |
| Cerner Corp | 56.72 | 45.09 | -20.50% |
| CGI Group | 11.06 | 7.8 | -29.50% |
| Citigroup - Transaction Services | 28.92 | 6.71 | -76.80% |
| CSC | 47.45 | 35.14 | -25.90% |
| Convergys Corp. | 16.04 | 6.41 | -60.00% |
| Fiserv | 55.26 | 36.37 | -34.20% |
| Harris Corp | 61.87 | 38.05 | -38.50% |
| Insight North America | 18 | 6.9 | -61.70% |
| ITT Defense | 63.88 | 45.99 | -28.00% |
| Lockheed Martin | 105.35 | 84.08 | -20.20% |
| ManTech | 42.33 | 54.19 | 28.00% |
| McKesson | 63.91 | 38.73 | -39.40% |
| Metavante | 22.33 | 16.11 | -27.90% |
| Northrup Grumman | 78.6 | 45.04 | -42.70% |
| NTT Data Corp | 24.79 | 27.19 | 9.70% |
| OfficeDepot | 13.51 | 2.98 | -77.90% |
| OfficeMax | 20 | 7.64 | -61.80% |
| PCConnection | 11.28 | 5.12 | -54.60% |
| PCMall | 8.9 | 4.01 | -54.90% |
| Perot Systems | 13.19 | 13.67 | 3.60% |
| QinetiQ | 199 | 158.75 | -20.20% |
| Raytheon TSC | 60 | 51.04 | -14.90% |
| SAIC | 19.43 | 19.48 | 0.30% |
| Siemens | 157.14 | 75.75 | -51.80% |
| SRA International | 28.8 | 17.25 | -40.10% |
| Staples | 22.2 | 17.92 | -19.30% |
| Systemax | 19.41 | 10.77 | -44.50% |
| Tata Consultancy Services | 918 | 496.65 | -45.90% |
| Unisys | 4.58 | 0.85 | -81.40% |
| WiPro Infotech | 14.42 | 8.13 | -43.60% |
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