Associated Press
10.06.08,
1:41 PM ET
Shares of major software companies sank sharply Monday amid a widespread market decline, fueled by investors' fears that Washington's $700 billion bailout package could take a while to free up frozen credit markets.
Software makers remained relatively unharmed for months as the subprime mortgage crisis seeped into the financial sector, but as short-term credit businesses need for daily operations dries up, investors are nervous that information-technology spending may drop off.
Microsoft Corp.
), which makes the ubiquitous Windows operating system and many of the server programs that power business' e-mail and file systems, dropped $1.63, or 6.2 percent, to $24.69 in afternoon trading.
Adobe Systems Inc.
), maker of Photoshop and other design programs used widely in publishing, advertising and Web design, fell $2.67, or 7.9 percent, to $31.02. A Friedman, Billings, Ramsey analyst downgraded the stock Monday, echoing concerns of several analysts in recent days that sales of the newest versions of its software may suffer in tight economic times.
) Inc. and
Symantec Corp.
) also saw shares sink Monday. McAfee's stock fell $2.38, or 7.4 percent, to $29.78, while Symantec's share price plunged 83 cents, or 4.9 percent, to $16.12.
Oracle Corp.
)'s stocks both plummeted after SAP warned investors it won't meet expectations for the quarter ended Sept. 30.
Shares of Walldorf, Germany-based SAP dropped $6.50, or 14.2 percent, to $39.15. Redwood Shores, Calif.-based Oracle's stock fell $1.68, or 8.6 percent, to $17.80.
The Dow Jones industrials skidded more than 550 points Monday, falling below 10,000 for the first time in four years.
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