Marketplace®

Daily business news and economic stories

Tech sector could see summer rebound

Some major tech companies release earnings reports this week, and analysts say it wouldn't take a huge miss for one big name to take down the whole sector. Jennifer Collins reports where there could be signs of a rebound.

Download

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.

Related Topics

Latest Episodes

View All Shows
  • Marketplace Tech
    44 minutes ago
    11:03
  • Marketplace
    12 hours ago
    25:19
  • Make Me Smart
    18 hours ago
    19:00
  • Marketplace Morning Report
    20 hours ago
    6:55
  • This Is Uncomfortable
    3 days ago
    56:05
  • Million Bazillion
    24 days ago
    32:45