Tech Winners & Losers: Take-Two

Tech stocks couldn't escape the pain spreading throughout the market Monday as a result of Lehman Brothers(LEH Quote - Cramer on LEH - Stock Picks) teetering toward bankruptcy and Merrill Lynch(MER Quote - Cramer on MER - Stock Picks) agreeing to be bought out by Bank of America(BAC Quote - Cramer on BAC - Stock Picks).

The Nasdaq lost 43 points -- or 1.9% -- to 2218.

Hardest hit was video game maker Take-Two(TTWO Quote - Cramer on TTWO - Stock Picks), whose stock nosedived 22% to $17.05 after a merger deal with Electronic Arts(ERTS Quote - Cramer on ERTS - Stock Picks) finally collapsed.

Electronic Arts pulled its $2 billion offer over the weekend after months of failed negotiations with Take-Two. Shares of Electronic Arts slipped 2% to $44.07.

SanDisk(SNDK Quote - Cramer on SNDK - Stock Picks) shares also fell on Monday, down 6.3% to $14.70 after Cowen chopped its estimates for the company as a result of softening pricing for NAND flash memory.

The firm now expects SanDisk to lose 65 cents a share for the year instead of 38 cents as previously predicted. For next year, it expects a loss of 25 cents a share instead of a profit of 13 cents a share.

Shares of Research In Motion(RIMM Quote - Cramer on RIMM - Stock Picks) tumbled 5.4% to $99.97 after Pacific Crest offered a bleak assessment of the company's sales. The firm sees September's numbers as slightly disappointing, despite a number of new product launches. August sales are also looking flat.

One of the few bright spots among tech stocks was DealerTrack(TRAK Quote - Cramer on TRAK - Stock Picks), which provides software and systems to car dealers. Shares climbed 3.1% to $18.60 after JMP Securities upgraded the stock to market outperform from market perform.