Turns out tech won't be untouched by the financial crisis. Some of the biggest technology stocks got slammed amid a massive market meltdown today, and few were immune to the bloodshed; Google, IBM, Hewlett Packard and Apple shares traded deep in the red after the House rejected a bailout plan which was supposed to keep the U.S. economy from drowning in bad debt.
Google shares traded below the $400 level for the first time since 2006; Yahoo shares fell close to 11 percent at $16.88, where it last traded in 2003; shares of IBM slipped a little more than 4 percent; HP shares fell close to 7 percent.*
Apple shares, a Wall Street favorite just a few months ago, hit a new 52-week low today, largely on concerns that PC sales will dry up and consumer spending will stall.
The stock opened at $119.50, down nearly 7 percent from Friday's close, and promptly dropped to a low of $105.77, down 8 percent from the previous 52-week low of $115.44.
Another reason for the Apple selloff: Two banks (Morgan Stanley and RBC Capital) cut their ratings on the stock.
"First, PC unit growth is decelerating and the remaining source of growth is increasingly in the sub-$1,000 marker, where Apple does not play," said Morgan Stanley analyst Kathryn Huberty, in a published note.
Equally concerning, said RBC Capital Markets analyst Mike Abramsky, is the potential dip in consumer spending on electronics.
"In a [September] survey, RBC IQ/Changewave data (4,100) shows 40
percent of consumers plan on spending less on electronics [the] next 90 days, the weakest outlook ever seen," wrote Abramsky.
*Updated to include closing prices.
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