Stocks quoted in this article:
One of the most-active issues trading on the Nasdaq Exchange today is RealNetworks (RNWK – 5-7/8), a provider of audio and video software devices. Last night after the closing bell sounded, the firm reluctantly joined the long line of technology companies that have been forced to shuffle their quarterly expectations lower. RNWK said it now aims to earn two cents per share for the fourth quarter, half as much as the Street had been previously expecting.
The Street did not take kindly to this news, as the shares have been downgraded at 10 brokerage houses this morning, including Merrill Lynch, Bank of America, and Credit Suisse First Boston. Meanwhile, the investing world, which should be taking earnings warnings in stride by now, has sent the stock down over 40 percent on heavy volume. The equity is now trading at levels not seen in over two years.