Wednesday's Tech Winners & Losers

Updated from 12:58 p.m. EDT

Earnings news drove technology stocks modestly lower Wednesday, with Yahoo!(YHOO Quote) leading the way.

Shares in Yahoo! slumped 11.8% after the Internet company posted first-quarter earnings that fell a penny a share short of expectations. The company earned $142.4 million, or 10 cents a share, on revenue of $1.18 billion. Analysts polled by Thomson First Call expected earnings of 11 cents a share on revenue of $1.21 billion. During the year-earlier quarter, the company earned $159.9 million, or 11 cents a share, on revenue of $1.09 billion.

Looking ahead, Yahoo! sees second-quarter revenue of $1.2 billion to $1.3 billion, in line with the $1.28 billion that analysts project. Shares closed down $3.78 to $28.31.

As for the broader technology sector, the Nasdaq 100 was down about 2.5 points to about 1832.

Elsewhere, IBM(IBM Quote) slid 2.4% after the IT hardware and services company posted in-line first-quarter earnings. The company earned $1.84 billion, or $1.21 a share, on revenue of $22 billion. Analysts expected earnings of $1.21 a share on revenue of $21.9 billion. During the year-earlier quarter, the company earned $1.71 billion, or $1.08 a share, on revenue of $20.7 billion. Shares closed down $2.32 to $94.8.

Meanwhile, shares of Seagate Technology(STX Quote) fell 3.8% after the disk-drive maker posted disappointing third-quarter earnings and warned that fourth-quarter results would be below Wall Street's forecast. The company posted adjusted earnings of $274 million, or 47 cents a share, on revenue of $2.83 billion. Analysts expected earnings of 51 cents a share on revenue of $2.8 billion. During the year-earlier period, the company earned $274 million, or 53 cents a share, on revenue of $2.3 billion. "We are disappointed in our results for the March quarter," the company said. "We clearly miscalculated the market, and in this unusually challenging environment failed to deliver the projected results."

Looking ahead, Seagate sees fourth-quarter adjusted earnings of 34 cents to 38 cents a share on revenue of $2.65 billion to $2.75 billion. Analysts project earnings of 53 cents a share on revenue of $2.78 billion. Shares were down 85 cents to $21.30.