Tech stocks plummeted with the rest of the market on Monday, with investors taking little comfort in the $700 billion bailout package approved by Congress on Friday. The Nasdaq sunk 84 points, or 4.3%, to close at 1862. Few companies were spared from the market meltdown. Nvidia shares, for instance, plunged 13.1% to $7.85 after Pacific Crest predicted that the chipmaker would pre-announce disappointing third-quarter earnings. The firm also predicts Nvidia will sell its chipset business. Pacific Crest cut its financial estimates for the company, and downgraded the stock to neutral. Shares of SAP SAP ( SAP) also tumbled 13.1% to close at $39.68. The German software maker warned that its sales had dropped off sharply at the end of its third quarter as a result of companies holding back on their spending. "Throughout the third quarter we felt quite positive about our ability to meet our expectations," said Henning Kagermann, co-CEP of SAP, in a statement. "Unfortunately, SAP was not immune from the economic and financial crisis that has enveloped the markets in the second half of September, causing us to report numbers below our expectations." eBay ( EBAY) shares also slid on Monday, down 5.5% to close at $17.89. The online auction site said it would shrink its workforce by 10%, or about 1,000 employees, for savings of $150 million next year. The company also announced the purchase of Bill Me Later, an online payment service, for $820 million in cash and $125 million in outstanding options. It also acquired Denmark's online classifieds site, dba.dk, and vehicles site, bilbasen.dk for $390 million in cash.
Telecom stocks took a beating as well. Handset maker Nokia ( NOK) fell 5.9% to $16.71 while Motorola ( MOT) plunged 8.6% to $6.14. Network equipment makers Nortel Networks ( N) and Alcatel-Lucent ( ALU) also saw a steep drop in their shares. Nortel was down 10.1% to $1.87 and Alcatel-Lucent was down 11.3% to $3.14 . Shares of Double-Take Software ( DBTK) fell 17.3% to $7.24 after the company warned that its third-quarter results would fall short of its previous guidance. Double-Take now expects revenue of $23.8 million to $24 million instead of its previous guidance of $25.7 million to $26.3 million. It also sees non-GAAP earnings of 14 cents a share to 15 cents a share, down from its previous guidance of 15 cents a share to 16 cents a share.