It also said that its 2001 projections are unreliable and that it will fire an additional 5,000 people. San Jose's Cisco, which briefly last year became the world's most valuable company, has faded in the rankings. Network Appliance, of Mountain View, Palm, and Siebel Systems, of San Mateo, are also in the 10 worst performers this year. Palm, or example, has shed 72 percent of its worth in those three months. Palm, the biggest maker of electronic organizers, said late Tuesday that it expects a loss this quarter, that it will bring in lower sales than a year ago, and that it will lay off about 13 percent of its workforce.
Analysts say that's because while stock prices are going down, earnings are going down even faster.
That means stocks are more expensive relative to the profits that tech companies are making. But by March 23, the ratio had rebounded to 190.77. The reversal could signify that the earnings deterioration has caught investors off guard, and could herald further selling. Meanwhile, earnings continue to fall. That's a bigger drop than the 4.1 percent they expected March 1.