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Oct 6 2008
3:23PM
EDT
Tech's Getting Beat Up, Too
The Dow isn't the only index taking a hit today. The tech-stuffed Nasdaq fell more than 8 percent by mid-afternoon, with big losses by SAP, Ebay, and Netflix, among others.
Henning Kagermann, SAP's co-C.E.O., issued a statement earlier in the day, pointing not to a slow-down in corporate demand for enterprise software but to the financial meltdown impacting every sector: "Throughout the third quarter we felt quite positive about our ability to meet our expectations. Unfortunately, SAP was not immune from the economic and financial crisis that has enveloped the markets in the second half of September, causing us to report numbers below our expectations." SAP fell 13.5 percent.
Enterprise business had been seen as a cause of slowing tech growth, but the sector was viewed as largely immune from the market turmoil because most tech companies are less leveraged and more cash rich. But now they're all feeling the heat.
Apple, which saw its stock reel Friday after a bogus rumor that C.E.O. Steve Jobs suffered a heart-attack, is down at a drop of 3 percent and trading at a little over $94. Microsoft is currently taking a hit of six percent, for $24.74 a share. Google is down nearly six percent, at $366.08--its lowest point in two years. Yahoo is trading a little under $15 dollars a share, down seven percent. Even news of eBay's shopping couldn't pop stocks up; the online auctioneer's stock is down little over five percent to $17.96. Netflix fell almost 12 percent, trading at $25.66.
With the passage of the bailout bringing little relief to the markets, it seems that tech is no safe haven for investors either.
--Andrea Chalupa
Henning Kagermann, SAP's co-C.E.O., issued a statement earlier in the day, pointing not to a slow-down in corporate demand for enterprise software but to the financial meltdown impacting every sector: "Throughout the third quarter we felt quite positive about our ability to meet our expectations. Unfortunately, SAP was not immune from the economic and financial crisis that has enveloped the markets in the second half of September, causing us to report numbers below our expectations." SAP fell 13.5 percent.
Enterprise business had been seen as a cause of slowing tech growth, but the sector was viewed as largely immune from the market turmoil because most tech companies are less leveraged and more cash rich. But now they're all feeling the heat.
Apple, which saw its stock reel Friday after a bogus rumor that C.E.O. Steve Jobs suffered a heart-attack, is down at a drop of 3 percent and trading at a little over $94. Microsoft is currently taking a hit of six percent, for $24.74 a share. Google is down nearly six percent, at $366.08--its lowest point in two years. Yahoo is trading a little under $15 dollars a share, down seven percent. Even news of eBay's shopping couldn't pop stocks up; the online auctioneer's stock is down little over five percent to $17.96. Netflix fell almost 12 percent, trading at $25.66.
With the passage of the bailout bringing little relief to the markets, it seems that tech is no safe haven for investors either.
--Andrea Chalupa
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