Shares of e-commerce software company Broadvision (Nasdaq: BVSN) fell more than seven percent on Thursday, dropping 7-1/4 to 91-15/16 one day after the stock was downgraded by two investment firms. Legg Mason downgraded the stock from buy to outperform, while Spencer Clarke downgraded it from strong buy to market perform.
This may not be as bad as it seems. Consider that Broadvision is still trading less than 15 points off its all-time high while many Internet stocks are trading at less than half of their highest level. Analysts and investors have reason to be careful, because there’s a lot of uncertainty in the Internet sector and Broadvision stock has climbed a long way in a short while. (The company’s 52-week-low is 9-1/4.)
However, it should be noted that Broadvision is one of the minority of Internet companies that’s turning a profit. Caution is advised, but this isn’t the time to panic.