Tech Stocks Plunge As Wall Street Selloff Continues2:20 PM EST Mon. Aug. 08, 2011
The big sell off on Wall Street continued Monday after Standard & Poor's Ratings Services downgraded several credit ratings linked to the U.S. debt including Fannie Mae and Freddie Mac.
Many IT companies again appeared to bear the brunt of worried investors, with many technology stocks stocks dropping more than the Dow Jones (down 2.7 percent in early afternoon trading) and Nasdaq (down 3.7 percent) indices.
Interestingly, Quantum was one the big tech losers on Wall Street Monday as its stock was down almost 11 percent to $1.94 in morning trading. This after Standard & Poor's upgraded its outlook on Quantum just last Wednesday.
Other noteworthy drops being experienced by tech vendors included Netgear (down 7.9 percent to $28.62) and Citrix Systems (down 7.8 percent to ($59.40) and AMD (down 7.5 percent to $6.07).
On the channel side, GTSI shares were down 11.4 percent to $4.51 and Insight Enterprises shares were off 8.6 percent to $15.42. Last week, Insight was a lone exception to Falling Stock Syndrome after reporting solid earnings.
Of nearly 50 tech stocks tracked by CRN, none showed share gains on Monday. The closest was Intel, which was only down 0.7 percent and IBM, which was down 1.3 percent.
Since July 21, the Dow Jones is down 12.4 percent and Nasdaq is off 14.7 percent since July 22.