Join the big show, and watch your stock drop. That's what happened Friday to e-commerce software-maker
, which joined the
Nasdaq 100 index
and saw its shares drop nearly 10% all in the same day.
Of course, that might also be because Ariba jumped 13% yesterday and some investors found the temptation to profit irresistible. Rival
saw a dip as well, as its shares closed down more than 5%. Historically, the two stocks often chase each other up and down.
Ariba reported last week that its revenue climbed sharply in the latest quarter and posted a smaller-than-anticipated operating loss. But overall, Ariba is down 11% for the week.
, the officially designated underachiever of the week, closed down more than 6% to $42.55. For the week, Nortel dropped 35%.
4:43 p.m.: Old Tech Friends Spend Day Happily in the Green
The feeling today was that old friends are the best friends -- at least when it comes to tech stocks.
Technology stocks went higher, apparently helped by
good report Thursday. Then tech stocks lost their surge, and investors sought refuge with some old familiar names like
"I think a lot of fears were relieved with JDS. And they like the big tech names," said Tim Grazioso, manager of
Nasdaq trading at
Intel ended up 3.8%, Hewlett-Packard ended 1.4% higher and Microsoft gained 5%. Fellow technology bellwether
also was up today, about 1.2%.
With semiconductors, however, volatility continues apace with semiconductors -- and it might stay that way for a while.
Many semiconductor stocks slid, as did the
Philadelphia Stock Exchange Semiconductor Index
, which dipped 2.9%.
was one of the day's biggest losers, dropping 9.5% after a downgrade from buy to outperform by
dropped 4.4% after
downgraded the stock Friday from buy to attractive. Micron was downgraded Wednesday by
Chase Hambrecht & Quist
Banc of America Securities
Investors rotated into chip giants Intel and
Advanced Micro Devices
, with AMD gaining more than 0.6%, finding comfort in familiar names in what has been a volatile semiconductor market in recent weeks.
It's a pattern that's likely to continue as the market strives for a way to measure performance in semiconductor stocks, analysts said.
Some of the measures used in the past -- for example, DRAM prices or cell phone growth -- no longer work as an effective measurement for most of the chipmakers, said analyst Susan Billat of Robertson Stephens, but some investors still "cling to the familiar."
Until the market can find ways to measure performance for each of the different parts of the sector, the volatility will continue, said analyst Drew Peck of
. "Problems with one company don¿t necessarily mean problems with another, because the end markets are very different."