Tech Winners & Losers: TW Telecom
09/09/08 - 04:32 PM EDT
Pia Sarkar
Tech stocks started Tuesday on a climb but lunged back into negative territory and continued a downward spiral that brought the Nasdaq to within 3% of its 52-week low.
The Nasdaq closed down 60 points, or 2.6%, to 2210. TW Telecom(TWTC Quote - Cramer on TWTC - Stock Picks) plummeted 17.3% to $12.26 after the company said late Monday that it is feeling pressure on its revenue growth and has had to disconnect some of its small business clients due to defaults on their bill payments. On Tuesday, Citigroup downgraded the stock to hold from buy and cut its price target to $17 from $20. Merriman Curhan Ford also lowered its rating to neutral from buy. VMware(VMW Quote - Cramer on VMW - Stock Picks) saw its shares fall 7% to $32.47 after its chief scientist -- who is also spouse of the company's former CEO -- resigned from his position late Monday. VMware is also facing stiffening competition in virtualization products from Microsoft(MSFT Quote - Cramer on MSFT - Stock Picks). Shares of Corning(GLW Quote - Cramer on GLW - Stock Picks) continued to tumble on Tuesday, despite a research note from Thomas Weisel stating that investor sentiment has gotten too low on the maker of glass for LCD panels. The firm upgraded the stock to overweight from market weight. But shares for Corning were still sinking from last week, when the company cut its third quarter forecast. The stock was down 3.5% to $16. SanDisk(SNDK Quote - Cramer on SNDK - Stock Picks) was down 7.2% to $15.40 after Lazard Capital put out a note saying an acquisition by Samsung seemed unlikely. The firm downgraded the stock to hold from buy.
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