Some investors thought that tech shares would fall apart like financial and transportation stocks have. One by-product of the recession would be a slowing of consumer and business purchases of PCs and enterprise equipment like routers. Internet businesses would suffer from a drop in online ads.
It may be that things are not working out that way. The Nasdaq jumped almost 5% over the last month.
As The Wall Street Journal writes (subscription required), Dell Inc. (NYSE: DELL) jumped late in the week on better-than-expected earnings. The largest of the internet companies, Google Inc. (NASDAQ: GOOG), rocketed after good earnings and has kept most of those share price gains. Consumer electronics bellwether Apple Inc. (NASDAQ: AAPL) has kept moving higher as investors expect a new iPhone and Macs continue to sell well.
Overall, the market may continue to fall. Certainly most companies still run great risks with higher inflation and slowing GDP. Tech seems to have dodged those bullets.
Douglas A. McIntyre is an editor at 247wallst.com and author of the Tens Stocks Under $10 Newsletter.
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Reader Comments (Page 1 of 1)
5-31-2008 @ 5:04PM
Beltway Greg said...
Gotta love the latest report from IDC purporting to show that Apple has lost market share. Actually RIMM lost market share YOY (48-44) and the IPhone wasn't even released during the 1st qtr. last year. Given the difficulty in procuring said phone globally the phone has done extraordinarily.
Go ahead, short a thousand shares on Monday and stay short until Dec. 31. And how is RIMM doing with their new device and their computer sales? Oh, they don't sell anything other than smart phones and the new device isn't going to be released until later this summer. BTW, the phone is a small computer in your pocket that receives phone calls and if you want to buy one before your contract with another carrier is complete simply call forward to the IPhone
Beltway Greg