Shares in technology giant Sun Microsystems fell steeply after broker Bear Stearns cut its earnings estimates for the fourth time this year, nearly halving the 12-month target price to $24 from $40.
Sun shares lost 4.54 per cent to $15.13 after earlier dipping as low as $14.75. The Nasdaq composite gained 15.57 points to 1,869.70.
The analysts expect the firm to earn 50 cents a share, down from a prior estimate of 70 cents.
Sun faces a tough economic environment for capital expenditure and a more competitive product threat from IBM and Hewlett Packard.