Compaq profit scare hits tech stocks

Intel and Gateway dragged down after Compaq suffers poor Q1

Comments from Compaq that its first quarter results might be "a bit light" have sparked off a wave of decline across technology stock prices. It blamed slow sales into the SME sector. Compaq’s stock fell by around 16 per cent during the opening hours of US trading, so much of its stock was being shifted that at one point it was one of the most active US stocks, according to reports. One analyst is reported to have lowered his expectations of Compaq’s Q1 turnover from $10.1 billion to $9.8 billion. The outbreak of selling and diving prices hit Intel and Gateway, among others. Intel stock fell $6 3/8 to $121 3/8 and beat Compaq to the inauspicious 'most active stock' position in US trading. Gateway fell $5 1/8 to $75. ®

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