Tech Stocks Down, Led By Data-Center Shares (EQIX, RAX, TMRK, SVVS, AKAM, AAPL, HPQ, MSFT, RIMM, NFLX)
US Tech stocks continued their downward movement with shares of many data-center-related companies leading the decline, after Equinix Inc (NASDAQ: EQIX) issued a revenue warning.
Shares of Equinix tumbled about 32% after the company lowered its Q3 sales projections to $328 million to $330 million, down from its previous guidance of $335 million to $338 million. However, analysts estimated sales of about $337 million.
Analysts at Oppenheimer, Citigroup and Wells Fargo downgraded Equinix's stock, after the warning.
Shares of other data-center companies also moved down. Shares of Rackspace Hosting Inc (NYSE: RAX) fell about 11.87%, Terremark Worldwide Inc shares (NASDAQ: TMRK) moved down about 4.84%, Savvis Inc (NASDAQ: SVVS) dropped about 11.60% and Akamai Technologies Inc. (NASDAQ: AKAM) fell about 8.06%.
The decline in the sector was also due to weak ADP jobs report for September.
The other decliners in the list include Apple Inc (NASDAQ: AAPL), Hewlett-Packard Co (NYSE: HPQ), Microsoft Corp (NASDAQ: MSFT), Research In Motion Ltd (NASDAQ: RIMM) and Netflix Inc (NASDAQ: NFLX).
The Nasdaq Composite Index lost about 1.01%), while the Philadelphia Semiconductor Index moved down about 2.26%. The Morgan Stanley High Tech 35 Index fell about 1.94%.
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