DXC, CDW, Others Hit: Coronavirus Stock Sell-off Again Slams Channel

It’s been another brutal day for publicly traded channel companies, as Monday’s massive decline in equity markets—the third worst in the history of the Dow Jones Industrial Average—slammed share prices of IT distributors and systems integrators again particularly hard.

Since global markets started plummeting due to the coronavirus global pandemic, some of the largest companies in the channel have seen their valuations suffer even worse than the vendors whose technologies they bring to market.

That trend continued as a new week started with the worst market decline since the “Black Monday” crash of 1987, despite a massive monetary stimulus from the Federal Reserve.

[Related: DXC, CDW Caught In Tech Stock Selloff]

DXC Technology, one of the world’s largest integrators, closed at $15.14 on Friday following a terrible week brought on by the coronavirus crisis. By the time markets opened again Monday, the company was trading at $12.47, and the selloff continued throughout the day, bringing the stock below $11. DXC ended 2019 with its stock hovering above $37 per share.

CDW also slid more than 14 percent on Monday after enduring major declines in the prior week. The IT services provider closed on Friday at $101.30, but it was trading at $88.50 when markets reopened Monday before falling below $87.

Likewise, Cognizant fell by more than 17 percent, from a close Friday at $52.62 to $43.58 at market close Monday. SS&C, which sell software and services to financial institutions, dropped by nearly 15 percent, closing at $38.31, and global solutions provider ePlus dropped by almost 10 percent.

All major publicly traded IT distributors grappled with stunning losses in their valuations.

Synnex fell more than 15 percent after closing at $92.59 on Friday. The company’s after-hours losses weren’t as severe as some others, but after opening at $86 on Monday, Synnex stock slid to just above $77 per share during the trading day.

Tech Data closed Friday at $133.74, but was slammed by traders Monday, falling 18 percent to $108.87.

Arrow Electronics fell by more than 12 percent, from $56.89 to $49.73; and Avnet fell almost 12 percent to close at $23.56 after hovering above $40 per share for most of 2019.