Tech Winners & Losers: Apple
09/29/08 - 02:35 PM EDT
Pia Sarkar
Tech stocks plunged deep into negative territory as a failed federal bailout package rocked the financial markets, sending investors into a panic.
The Nasdaq nosedived 6.8% to 2035. Apple(AAPL Quote - Cramer on AAPL - Stock Picks) shares plummeted 13.6% to $110.82 after both Morgan Stanley and RBC Capital downgraded the stock. Morgan Stanley lowered its rating to equal-weight from overweight, citing a deceleration in PC unit growth and adding that "the remaining source of growth is increasingly the sub-$1,000 market where AAPL does not play." The firm reduced Apple's price target to $115 from $178. RBC also lowered its rating to sector perform from outperform, and reduced its price target to $140 from $200. The firm noted that Apple is not recession-proof and the consumer spending environment is worsening. Shares of software stocks also fell after several analysts issued sector downgrades based on a lower IT spending outlook. Citrix(CTXS Quote - Cramer on CTXS - Stock Picks) was down 11.7% to $24.75 after RBC Capital lowered its rating to sector perform from outperform. The firm notes that recent checks point to difficulty with the business in the U.S. as well as in emerging markets. The negative sentiment also hit VMWare's(VMW Quote - Cramer on VMW - Stock Picks) shares, which were down 11.5% to $25.71 in afternoon trading. Sprint Nextel(S Quote - Cramer on S - Stock Picks) shares slipped after Oppenheimer downgraded the stock to underperform from perform, noting that the communications business is in the middle of a cyclical slowdown. The firm also lowered its rating on Comcast(CMCSA Quote - Cramer on CMCSA - Stock Picks) to perform from underperform and trimmed estimates on Verizon(VZ Quote - Cramer on VZ - Stock Picks) and AT&T(T Quote - Cramer on T - Stock Picks). Sprint was down 7.8% to $6.39 while Comcast was down 9.1% to $18.81. Verizon was down 2.2% to $31.48 and AT&T was down 3.5% to $28.95.
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