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Hot Stocks: Palm sweats
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December 20, 2000: 7:34 p.m. ET
RealNetworks, Zoran fall on earnings warnings; AT&T announces dividend cut
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NEW YORK (CNNfn) - Investors ignored the better-than-expected earnings announcement from Palm Inc. Wednesday, with the stock taking a beating in after-hours trading amid concerns that an increasing portion of Palm's second-quarter revenue may be stemming from sales of its low-end products.
Multimedia software maker RealNetworks slipped after warning of an earnings shortfall for its fiscal fourth quarter.
AT&T dipped after announcing a landmark cut in its quarterly dividend to 3-3/4 cents per share from its current 22 cents-per-share payout, the first such cut in the telephone company's history. AT&T also warned of lower fourth-quarter profit and revenue.
Wednesday's after-hours losers
Palm Inc. (PALM: Research, Estimates) down $6.13 to $32. Handheld computer maker Palm Inc. on Wednesday reported a fiscal second-quarter profit that beat analysts' expectations on revenue that more than doubled from the same period a year earlier.
Research In Motion (RIMM: Research, Estimates) down $3 to $72. The company said Wednesday rising subscriber growth for its Blackberry wireless pager more than doubled sales in its third quarter.
RealNetworks Inc. (RNWK: Research, Estimates) down $3.62 to $6.31. The multimedia-software maker on Wednesday warned that its fourth-quarter revenue and profits would fall short of Wall Street expectations, due in part to the pandemic slowdown in Internet-related spending.
Zoran Corp. (ZRAN: Research, Estimates) down $1.44 to $11.94 The maker of circuits and software for digital video and audio warned Wednesday that its fourth-quarter revenue and earnings will fall well below expectations due to slower worldwide demand, especially from China.
AT&T (T: Research, Estimates) down $1.44 to $17.50. AT&T, facing a lagging stock price and struggling long-distance business, announced Wednesday a landmark cut in its quarterly dividend to 3-3/4 cents per share from its current 22 cents per share payout, the first such cut in the telephone company's history. AT&T also warned of lower fourth-quarter profit and revenue.
Wednesday's after-hours winners
US Airways (U: Research, Estimates) up $1.50 to $40.44. A report issued by the General Accounting Office Wednesday said the proposed takeover of US Airways Group Inc. by United Airlines parent UAL Corp. would hurt competition in more than four times as many markets as it would help, affecting more than five times as many passengers.
Liberate Technologies (LBRT: Research, Estimates) up $1.50 to $12.50. The maker of software for interactive programming on Wednesday posted second-quarter losses that were narrower than expected, after it almost doubled its installed customer base.
Wednesday's after-hours newsmakers
Micron Technology Inc. (MU: Research, Estimates) up 19 cents to $30. One of the largest makers of memory chips used in personal computers on Wednesday reported first-quarter profits that fell short of expectations as sales fell 30 percent from the previous quarter.
Cisco Systems (CSCO: Research, Estimates) down 37 cents to $36.13. The computer-network parts maker said Tuesday in an SEC filing it had increased provisions against losses in the most recent quarter, but not because of an increase in delinquent accounts.
Jabil Circuit (JBL: Research, Estimates) unchanged at $21. The contract electronics manufacturer blamed parts shortages for first-quarter earnings that fell short of expectations, and lowered its full-year forecasts due to slowing demand for personal computers.
Dell Computer (DELL: Research, Estimates) down 7 cents to $16.56, Lucent Technologies (LU: Research, Estimates) up 6 cents to $15.63. Some of Jabil Circuit's biggest customers fell on Jabil's warning.
Microsoft (MSFT: Research, Estimates) up $1.25 to $42.75, Oracle (ORCL: Research, Estimates) down 37 cents to $28.13, Compaq Computer (CPQ: Research, Estimates) down 23 cents to $15.25, EMC (EMC: Research, Estimates) down 13 cents to $55.50, JDS Uniphase (JDSU: Research, Estimates) down 25 cents to $45.75. Concerns about the networking and personal computer sectors sent technology stocks into a tailspin.
Allegheny Technologies (ATI: Research, Estimates) unchanged at $13. The specialty metals producer said Tuesday its fourth-quarter earnings will likely fall short of the Wall Street consensus, due to the impact of a slowing U.S. economy on its commodity stainless-steel business and higher energy costs.
America Online (AOL: Research, Estimates) down 26 cents to $36.99. The European Commission approved plans by AOL -- the Internet service provider that's buying CNNfn parent company Time Warner (TWX: Research, Estimates) -- to acquire, with Spanish bank BSCH, joint control of Spanish online-services provider Prodigios Interactivos.
Nortel Networks (NT: Research, Estimates) up 12 cents to $31. ING Barings downgraded the networking company to "buy" from "strong buy." 
-- compiled by Mark Gongloff and Parija Bhatnagar from staff and wire reports
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