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Tech Stocks’ performances are disappointing

Tech stocks were not able to meet expectations; even some of them were decline. It is still too early to say tech stocks are no longer interesting, considering we had just entered the beginning of the second quarter. However, indications of decline in tech stocks in Fortune 500 are a warning to improve Tech stocks performance.

Manufacturers of chipsets and hardware, such as Texas Instruments (TXN, Fortune 500), Seagate (STX) has decreased significantly. Even Apple is considered to be Tech stocks led the stock has decreased by 4%. And analysts predict Apple could increase earnings per share up to 60%. Likewise with Google (GOOG), although earnings rose 17% and sales rose 27%, instead of their shares fall by 8%.

However, an interesting phenomenon can be seen from some tech stocks in the Fortune 500. Companies that experienced a decrease in net income would have increased the price of stocks, like IBM (IBM) and Yahoo (yhoo). Although, the overall tech stocks are declined, however, there are also some Tech stocks which increased both sales and earnings per share, such as Intel (INTC, Fortune 500) and Big Blue.

The decline in tech stocks is anti-climax of the expectations of the analysts who predict tech stock will grow by about 12% annually. The decline is happening due to the result of Tech stock market expectations which is too large. Despite the decline, tech stocks still tend to be stronger. Moreover, if technology companies merge, it can give a strong influence. Trend of merged company will likely still continue.

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Posted by on Apr 20 2011. Filed under Business. You can follow any responses to this entry through the RSS 2.0. Responses are currently closed, but you can trackback from your own site.
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