Software Stocks Struggling Following J.P. Morgan Downgrades
Software stocks were struggling in early trading after J.P. Morgan downgraded many stocks in the sector and lowered estimates on the whole group as a result of a worsened economic outlook.
J.P. Morgan downgraded
Quest Software
(QSFT)
and
Websense
(WBSN)
to long-term buy from buy, and downgraded
Embarcadero
(EMBT)
and
Red Hat
(RHAT)
TheStreet Recommends
to market performer from long-term buy.
Quest was down 2.5%, Websense was down 5.5%, Embarcadero was down 10.3% and Red Hat was down 3%.
J.P. Morgan said several stocks remained favorites despite the potential for continued sector weakness, including
Microsoft
(MSFT) - Get Microsoft Corporation Report
,
NetIQ
(NTIQ)
and
Mercury Interactive
(MERQ)
.
Microsoft was down 4.9%, NetIQ was down 7.3% and Mercury was down 3.2%.
