Yahoo! shares dipped below $18 for the first time since the company floated. One year ago, its share price peaked at $205. The company this week anticipated that it will break this year, having been profitable last year.
Shares in Terra Lycos and CNET Networks, both of which rely, like Yahoo!, mainly on internet advertising revenues, also suffered. CNET Networks also cut its first quarter revenue expectations.
Intel yesterday announced that it is shedding 5,000 of its 85,000 jobs over the next nine months, blaming a fall in the demand for PCs. It also predicted a 25% drop in revenue in its first quarter. The company said it is not forcing redundancies, instead making the cuts by not replacing staff who leave or retire.
Networking giant Cisco Systems is planning to cut 5% of its staff due to a slump in its sales. The news follows the company's announcement that it will freeze hirings for the time being.