SAN FRANCISCO -- Remember when tech stocks rallied more than just one day in a row? OK, it wasn't that long ago, but it looks as if Thursday's euphoria will give way to the darker side ahead of a long weekend.
Analysts' words of caution on
are contributing to a sharp selloff in the
following Thursday's gains.
Dell was off 8 5/16, or 8.2%, at 93 9/16.
BancBoston Robertson Stephens
analyst Dan Niles slapped a price target of 80 on the PC maker, saying competitive pressures will cut fourth-quarter revenue. The analyst wrote that year-over-year revenue growth has slowed from 66% in July 1997 to 54% in July 1998 and about 39% in January 1999.
"We believe Dell's finish to the quarter was soft, leading to revenues of $5.2 billion relative to our $5.5 billion expectation," the report says. "During Q4, we believe that the competitive pressure intensified, especially in the corporate market." Dell is expected to report earnings of 31 cents a share when it reports Tuesday, according to
Dell's competitors were mixed.
was down 1 3/4 at 43 1/16, while
was up 1 5/16 at 76 9/16 and
was down 4 at 72.
Lycos Holds Bid
Amid a sea of red,
was trading higher following Thursday's news that
expressed some reservations about Lycos' merger with
. Late Thursday, CMGI said it was "generally supportive" of the merger but "reserves the right to reassess its position."
Lycos was 1 1/4 higher at 104 1/2, though still far off its predeal price of 127, while CMGI was down 7 at 105.
, which dropped sharply following the merger announcement only to rebound Thursday on strong earnings and a stock split, was down 6 3/4 at 122 3/4.
Downgrades Punish J.D. Edwards
were sharply lower after the software developer was downgraded by a number of firms after warning of a shortfall in first-quarter revenue.
J.D. Edwards forecast earnings for the quarter at 2 to 4 cents a share, significantly below the 9-cent estimate from
Credit Suisse First Boston
BT Alex. Brown
downgraded the stock today.
J.D. Edwards was down 5 1/8, or 26%, at 13 3/4.