Top tech firms hit by stock market sell-off

Despite most technology firms reporting strong second quarter financial results and in many cases revising upwards their financial outlooks for the full year, top tech firms are among those hit by a stock market sell-off.

Despite most technology firms reporting strong second quarter financial results and in many cases revising upwards their financial outlooks for the full year, top tech firms are among those hit by a stock market sell-off.

Stocks as a whole have fallen 15% in the past few weeks, with the Nasdaq Composite, which has a number of technology firms, falling 6.9% on Monday, according to US reports.

Even top tech firms have been hit. Apple's share price fell 5.5% on Monday, having fallen 11% in the previous week. Microsoft's share price fell 4.7% on Monday, having fallen 10.2% in the previous week. Google was down 5.7%, having dropped 10% in the previous week.

Other top casualties include eBay, which lost 8% on Monday, down 18.4% in the previous week, and LinkedIn, which launched its IPO in May, dropped 17.4% on Monday, having fallen 27.5% in the previous five days.

Less than a week ago, LinkedIn reported second quarter revenue of $121m and profit of $4.5m, up 120% and 4% respectively on the same period a year ago, beating market expectations.

LinkedIn is not the only recent IPO firm to drop in value. Internet radio company Pandora and online media firm Demand Media have both fallen more than 50% from their highs to trade below their issue prices, according to the Financial Times.

Analysts say the decline in LinkedIn in particular shows how fears of an economic downturn have eroded the excitement about high-growth internet companies. They also predict that there will be relatively few technology IPOs in the second half of 2011.

 


Photo: Thinkstock

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