(Updates from 1:35 p.m. ET with closing information.)
Market research firm IDC said Wednesday global PC shipments dropped 13.9% in the first quarter, the biggest plunge since the firm began monitoring the industry in 1994, driven by a shift in consumer spending to smartphones and tablets and accelerated by the tepid reception to Microsoft's latest version of Windows launched on Oct. 26.
Microsoft has been downgraded by analysts at no less than three brokerage firms, with Goldman Sachs analyst Heather Bellini on Thursday cutting the software giant to sell from neutral and lowering the price target to $27 from $30, reflecting "worsening PC trends and a lack of traction in tablets and smartphones."Microsoft was dropping 5.04% to $28.75 in afternoon trading.
PC-giant Hewlett-Packard (HPQ) was tumbling 6.63% to $20.84. IDC said its worldwide shipments fell more than 23% year-on-year in the first quarter. Texas-based Dell (DELL) was off 0.63% as IDC said its shipments fell by more than 10% globally. Other companies dependent on PC sales were also hit by the report. Intel (INTC) was shedding 2.65% and Seagate Technology (STX) and Advanced Micro Devices (AMD) were giving up more than 4% Netflix (NFLX) was a bright spot in the tech world, jumping 3.02% to $171.08 after getting some love this morning from Goldman Sachs as the investment bank raised its earnings estimates and price target on the movie provider citing improved subscriber growth and margin expansion.
Closing prices: MSFT ended the day down 4.5% at $28.93, HPQ fell 6.5% to $20.88 and DELL fell 1.2% to $14.04. INTC dropped 2% to $21.93, STX fell 3.1% to $36.53 and AMD was lower by 3.5% to $2.52. NFLX, however, bucked the trend and closed up 4.2% at $173.01. Written by Andrea Tse in New York >To contact the writer of this article, click here: Andrea Tse.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV