Tech Stocks Tumble Continues Under Economic PressuresBy Kathleen A. Martin | Posted 2008-11-23 Email Print
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Hewlett-Packard's better than expected earnings, and Microsoft's committment to not layoff workers did little to save the tech sector's stock values last week.
The stock market offered a series of notable milestones last week. Thursday was the lowest point of the market since 2003, off 46.68 percent since a record high a little more than a year ago.
The market was down 19 percent for the month on opening Friday despite a rally on Tuesday with Hewlett-Packard (NYSE: HPQ) announcement regarding fourth quarter earnings and above street expectations for 2009. The market rewarded the tech giant by bumping its stock value 14 percent.
While opening down Friday, the market closed up over 494 points on the announcement by President-elect Obama naming Timothy Geithner as the next treasury secretary. Late day stocks soared bringing the market to a loss of only 5 percent week over week and 14 percent of the month. Overall, the market is down 39 percent for the year.
Technology stocks continued to slide with a series of double digit losses. Key highlights for the week include:
- Microsoft (NASDAQ: MSFT) confirmed they are not cutting jobs and anticipate maintaining their spending on research and development. "Right now we're still on a plan to complete 100 percent of our college recruitment plan globally," CEO Steve Ballmer told The Associated Press. "The ability to get top talent has actually improved" as the world enters what could be a punishing recession.
- Research in Motion (NASDAQ: RIMM) released the new Blackberry Storm through Verizon, competing head to head with Apple’s iPhone customers. RIM saw an increase of 12 percent in its stock price this week.
- Dell (NASDAQ: DELL) reported mixed results in its third-quarter earnings. Dell reported its earnings fell 5 percent and sales also declined from a year ago, due to what executives described as "a challenging demand environment." The market responded by battering Dell’s stock nearly 15 percent.
- Sun Microsystems (NASDAQ: JAVA) didn't see a significant bump in its stock value in the week following the announcement that it would eliminate up to 6,000 jobs or 18 percent of its workforce in a corporate restructuring.
The following are the week-over-week stock price closings for the top 50 technology vendors and 40 solution providers tracked by Channel Insider.
Leading Technology Vendor Stocks
|Adobe Systems (ADBE)||22.34||21.38||-4.30%|
|Arrow Electronics (ARW)||14.56||12.71||-12.70%|
|BMC Software (BMC)||25.02||23.41||-6.40%|
|Check Point (CHKP)||20.01||19.65||-1.80%|
|Cisco Systems (CSCO)||16.62||15.17||-8.70%|
|Citrix Systems (CTSX)||22.95||22.89||-0.30%|
|Data Domain (DDUP)||17.55||15.8||-10.00%|
|Foundry Networks (FDRY)||15.32||15.06||-1.70%|
|Ingram Micro (IM)||11.73||9.43||-19.60%|
|Juniper Networks (JNPR)||15.03||14.91||-0.80%|
|Nortel Networks (NT)||0.56||0.42||-25.00%|
|Red Hat (RHT)||10.49||8.56||-18.40%|
|Research in Motion (RIMM)||40||44.8||12.00%|
|Seagate Technology (STX)||4.87||4.4||-9.70%|
|Sun Microsystems (JAVA)||4.12||3.01||-26.90%|
|Tech Data (TECD)||19.46||15.28||-21.50%|
Leading Solution Provider Stocks
|BT Global Services||18.5||18.72||1.20%|
|Computer Sciences Corp (CSC)||28.53||26||-8.90%|
|Automatic Data Processing||35.12||35.25||0.40%|
|NTT Data Corp||21.58||21.34||-1.10%|
|Affiliated Computer Services||39.3||37.3||-5.10%|
|Tata Consultancy Services||529.4||506.66||-4.30%|
|Office Depot (Biz Solutions)||2.03||1.7||-16.30%|
|Insight North America||4.34||3.4||-21.70%|
|Staples (N.A. Delivery)||17.09||15.64||-8.50%|
|OfficeMax (Corp. Sales)||4.92||4.8||-2.40%|
|Citigroup (Transaction Services)||9.52||3.77||-60.40%|