Updated from 11:37 a.m. EDT
Technology stocks moved lower Wednesday, after a couple of big tech names got smacked with analyst downgrades.
, an electronic commerce-services company, moved lower after JMP Securities downgraded the stock to market perform from strong buy. The firm also cut its price target on the stock to $42 from $48. JMP said it changed its rating because of growing concern that
Bank of America
, CheckFree's biggest client, is planning to move the payment warehouse portion of its online bill processing service in-house. Shares closed down $2.79, or 7.3%, to $35.35.
, meanwhile, slid 4.1% after Cowen & Co. cut its rating on the stock to neutral. The firm also removed Salesforce.com from its focus list. Increased competition from the likes of
, coupled with a lack of near-term catalysts, is likely to keep a lid on the stock, the firm added. Shares closed down $1.86 to $43.84.
moved lower even after announcing a $128 million contract with Pearson. The five-year agreement, which is an extension of a seven-year contract signed in 2002, calls for IBM to provide Pearson with information technology infrastructure services that will be deployed across 30 locations in 11 states. The new contract extends the companies' contractual relationship to 2014. Shares of IBM were recently trading down $1.30 to $95.16.
, meanwhile, tumbled 10.6% after the software maker warned that second-quarter results would be lower than expected. The company now sees revenue of $20.5 million to $21 million, below its earlier view of $24 million. SoftBrands also said that it expects to post a larger operating loss. Previously, the company had said that it would lose about $1 million. SoftBrands plans to report second-quarter results on May 15. Shares closed down 23 cents to $1.95.
On the winning side,
rose 1.8% after the company posted a 45% jump in first-quarter revenue. The company posted revenue of about $2.9 million, representing the highest quarterly revenue in the company's history. "Nanophase started the new year with a solid pipeline of demand, allowing us to continue the revenue growth experienced during 2006," the company said. Shares closed up 11 cents to $6.26.
As for the broad technology sector, the Nasdaq 100 slid 18.84 points, or about 1%, to about 1789.09.