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HEXUS.sharewatch: tech stocks struggle

by Scott Bicheno on 25 November 2008, 10:44

Tags: AMD (NYSE:AMD), NVIDIA (NASDAQ:NVDA), Hewlett Packard (NYSE:HPQ)

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It's been over two weeks since the last HEXUS.sharewatch and it looks like the interesting times continue.

For most of the tech sector this has meant a fairly heavy fall in their share prices in the past fortnight, with many underperforming declining stock indices.

The Dow has dropped five percent and the more tech-heavy NASDAQ has fallen ten percent in this period, which already indicates a difficult time for the tech sector.

If we had written this analysis in the middle of last week things would have looked even worse, as both indices have risen by nearly 12 percent since close of business last Thursday, which appears to be the nadir of this most recent plunge.

A quick look at some of our list reveals some of the biggest fallers. The distributors have all suffered double figure drops, with Ingram Micro's and Tech Data's shares losing a quarter of their value in the last two weeks. Neither company seem to have done much in that period other than Ingram acquiring a German and a French data capture/POS company.

Yahoo! stock enjoyed a small lift when it announced it would be replacing Jerry Yang as CEO, but this soon turned into a plunge when hopes that this move would renew Microsoft interest in buying the company were dashed. We'll say it again; Yahoo! shareholders look increasingly poorly represented by its rejection of Microsoft's offers earlier in the year.

Dell has been delivering luke-warm results for most of this year and on 12th November announced it would lose the man who has been its CTO for the last 13 years. This may have contributed to a drop of over 19 percent in the value of Dell's shares in the past fortnight.