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Techs take it on the chin
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August 31, 1998: 12:10 p.m. ET
Big-ticket technology stocks lose some of their luster during sell-off
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NEW YORK (CNNfn) - Technology stocks continued their slide in early Monday trading as big-cap issues couldn't find their way out of the general market sell-off.
Among the big names taking a fall included Dell Computer Corp. (DELL), which tumbled 6-9/16 to 112-3/16. Just last week, the computer maker reached a 52-week high of 129-3/8.
Microsoft Corp. (MSFT) shares fell 2-7/8 to 102-3/8 as the company's ongoing antitrust battle heats up just as the market cools down.
As for other tech heavyweights, shares of computer-networking giant Cisco Systems Inc. (CSCO) dropped 5-3/8 to 119-5/8; telecommunications company Lucent Technologies Inc. (LU) fell 4-5/16 to 76-11/16; chipmaker Intel Corp. (INTC) slipped 2-1/8 to 74-7/8; IBM Corp. (IBM) shed 2-15/16 to 119-5/8; while Compaq Computer Corp. (CPQ) got off relatively well, losing 15/16 to 29-13/16.
"Everyone is concerned about recessions coming and the global economy problems," said Peter Andrew, technology analyst at A.G. Edwards. "If you look at the big-name companies that were doing relatively well during the first wave (of the market sell-off), they've been taking it on the chin the last few days. They can only hold up for so long."
The high-flying Internet sector also has lost some of its altitude since late last week. Online bookseller Amazon.com Inc. (AMZN) plunged 12-1/4 to 93-5/8; Web portal leader Yahoo! Inc. (YHOO) shares slumped 6-15/16 to 76-1/8; Excite Inc. (XCIT) shares fell 3-1/16 to 27-1/2; and Broadcast.com Inc. (BCST) dropped 8-5/8, nearly 20 percent, to 35-3/4.
Analysts have consistently considered Internet stocks highly overvalued in recent months. Andrew said the recent sell-off could be a matter of those companies giving back gains they didn't deserve to begin with.
"Those investors are probably trying to protect themselves on the downside," he said. 
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