By Benjamin Pimentel, MarketWatch
SAN FRANCISCO (MarketWatch) -- Twitter Inc. fell sharply after
being downgraded to sell, setting the pace for a retreat in
social-media stocks as the tech sector edged lower on Friday.
Twitter (TWTR) shed more than 5% after Macquarie analyst Ben
Schachter cut his rating to sell, citing a stock rally that he
argued was unjustified.
"We believe nothing has changed in the fundamentals to justify
the sharp rise in shares over the past few weeks," he told analysts
in a note.
Facebook (FB) and LinkedIn (LNKD) also saw their shares slide by
more than 1%, while Yelp Inc. (YELP) gave up 2.5% and Groupon Inc.
(GRPN) traded down 3%.
Apple Inc. (AAPL) was another notable decliner, shedding nearly
1%.
The Nasdaq Composite Index (RIXF) was last down 0.1% to 4,163,
though the benchmark was on track to end the week with a 1.4% gain.
The Morgan Stanley High Tech 35 Index (MSH) and the Philadelphia
Semiconductor Index (SOX) were each up a fraction.
Gains also came from Cisco Systems (CSCO) and Oracle Corp.
(ORCL)
Other tech stories from MarketWatch:
Twitter cut to sell; analyst sees rally as based on "little new
information"
Top tech trends in 2014 and what they mean to investors
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