Markets have turned south on the day, with the Nasdaq (INDEX: ^IXIC) down 0.98% while the S&P 500 (INDEX: ^GSPC) is seeing a smaller 0.78% loss as of 3:30 p.m. EDT. Needless to say, the Nasdaq's slip-sliding today has led to some pretty big losses among tech companies. Let's take a look at the day's biggest losers in the space and see what's causing their outsized drops.
Today's worst tech performers
OCZ Technology Group (NAS: OCZ)
Rambus (NAS: RMBS)
Zillow (NAS: Z)
Source: S&P Capital IQ as of 3:30 p.m. EDT.
Let's look a little closer at the three losers in the middle.
OCZ leads today's tech laggards with a nearly 10% drop. There's no real discernible news today on the company, but its drop is more a continuation of a decline from highs reached in February. While OCZ might attract attention for its placement in the booming solid-state drive industry, its aggressive sales promotions and low margins have left it unable to turn a profit. Throw in the fact the company's CEO recently resigned, and you can see why OCZ continues to be under pressure.
Zillow is dropping today thanks to a negative research report from Citron Research. If Citron sounds familiar, it's likely because the company has been in a battle with a group of Chinese companies who have posted the website citronfraud.com to combat claims from the company. Its attack on Zillow is less about the company being fraudulent, and more that its valuation is out of hand relative to its business prospects. At the end of the day, Zillow remains a hotly contested stock with some seeing an overvalued company with a limited runway for growth, while others see a game-changer in the real estate space. The battle over Zillow doesn't look ready to end anytime soon.
A day after notching 18% gains, Rambus is giving up about half those gains today. The company moved upafter a ruling in its continuing case against SK Hynix led many to believe Rambus would begin collecting licensing fees from the company. However, with another day to ponder the ramifications of the ruling, investors are selling off Rambus today amid heavy volume. The key to investing in Rambus is that the company is well off its highs seen before crushing rulings in other high-stakes cases. With few legal avenues left, whenever a decision hits, expects major volatility around the stock.
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The article 5 Tech Stocks Plummeting Today originally appeared on Fool.com.
Eric Bleeker has no positions in the stocks mentioned above. The Motley Fool owns shares of Zillow and InvenSense. Motley Fool newsletter services have recommended buying shares of Zillow. The Motley Fool has a disclosure policy.
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