Filed under: Google (GOOG), Microsoft (MSFT), Yahoo! (YHOO), Apple Inc (AAPL), Amazon.com (AMZN), Intel (INTC), IAC/InterActiveCorp (IACI)
Tech investors have taken it on the chin this year.
Since the start of January, the Nasdaq Composite Index is down about 11% amid some ugly double-digit declines in big-cap tech stocks. Apple Inc. (NASDAQ: AAPL) has dropped 18%, eBay Inc. (NASDAQ: EBAY) 16%, Microsoft Corp. (NASDAQ: MSFT) 5%, Yahoo Inc. (NASDAQ: YHOO) 8%, Amazon.com Inc. (NASDAQ:AMZN) 15%, Google Inc. (NASDAQ: GOOG) 12% and IAC/InterActiveCorp (NASDAQ: IACI) 10%. Even IBM Corp. (NYSE: IBM), which surprised Wall Street when it announced better than-expected fourth quarter results, is down for the year as is Intel Corp. (NASDAQ: INTC) despite optimistic pronouncements from its CEO.
How did Wall Street’s darlings become dogs? People are scared about everything from subprime mortgages to the horrible real estate market, so they may be selling their tech stocks and burying the money in shoe boxes in their back yard. Maybe there was some profit taking. I’ll entertain all theories, but the issue for investors today is whether Wall Street has thrown the baby out with the bath water. In some cases, the answer is yes. Below is a run-down of the major tech companies set to report over the next two weeks.
Apple — January 22
- Analysts’ Estimates: Earnings $1.46; Revenue $9.46 billion
- Good News: People continue to love their iPhones and iPods. iTunes leads the way in digital media. Even the Mac is gaining sales thanks in part to the clever ad campaign. Overseas sales should be strong.
- Bad News: Steve Jobs & Co. may be vulnerable to a slowdown in the economy. Gadget freaks may not be able to afford the latest gizmos if they are worried about paying their mortgages. Like Google investors, Apple shareholders will bolt at the first sign of trouble.
Continue reading Will tech stocks get out of their funk?
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