Tech Shares Plunge on Intel Downgrade --- Stock's Recent Sharp Rise Is Cited by Two Analysts, Sparking Profit-Taking
Technology shares dived yesterday after Intel Corp.'s stock was downgraded by two analysts who cited its recent sharp appreciation in price.</br></br>The downgrades were all investors needed to sell Intel, which many saw as a soaring stock that had gotten ahead of itself. Intel swooned 4.6%, tumbling $7.50 to $157.25 in Nasdaq Stock Market trading.</br></br>With technology stocks trading on momentum as waves of new investors recently poured in, all it took was a couple of blips of negative news to trigger broadbased profit-taking, analysts said.</br></br>"Today was mindless," said Roger McNamee, partner at technology investment firm Integral Capital Partners in Menlo Park, Calif. "Tech-stock investors fluctuate from euphoria to blind panic, and right now we're in the blind panic mode." In his opinion, "these stocks are a lot better buy today than they were yesterday."</br></br>The technology-heavy Nasdaq Composite Index fell 25.31 points, or 1.84%, to 1348.44.