Tech sector could see summer rebound
TEXT OF STORY
Steve Chiotakis: Of course, Nasdaq shares of course are tech-heavy, and we’re set to hear more earning reports this week that could have some broad implications on the tech sector. IBM kicked things off after the markets closed yesterday reporting sales fell by more than expected last quarter. Here’s Marketplace’s Jennifer Collins.
Jennifer Collins: Apple, Microsoft, Yahoo and Big Blue. The biggest names in the industry report earnings this week.
Laura Didio: If one of them misses it can take down the entire sector.
Laura Didio heads the research firm ITIC:
Didio: And they don’t have to miss by much for things to come tumbling like a house of cards.
Even if tech stocks do take a beating this week, Didio sees signs of a rebound. Here’s one example: Many businesses have put off IT upgrades, and she expects they’ll start spending by summer.
Another reason for hope? Computer analyst Roger Kay points to sales of netbooks, those super-cheap — albeit basic — laptops.
Roger Kay: Netbooks jumped in the last year more than anyone expected.
Kay says demand is still strong when buyers see something that looks like a bargain — whether it’s a brand new gadget or a beaten-down tech stock.
I’m Jennifer Collins for Marketplace.
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