by Brian Solis
The financial free fall that taking place around the world has, for the most part, bypassed the tech sector.
If you want to support that position, let’s not use Google (NasdaqDS:GOOG) as the primary example. Perhaps you should start with Apple instead. They’re operating at a 34.7 percent margin, which is just exception for a consumer tech hardware company.
Not sure if you noticed, but the company has dropped by 160 points from its high of 750 last Fall (excuse the pun). See John Battelle’s post for more on GOOG.
And we’re focusing on Yahoo?
According to several financial experts, tech should cruise through this financial reset unscathed. This time around, it’s the opposite of the last market downturn…tech is up and real estate is down.
But, let’s not look at Yahoo (NasdaqDS:YAHOO) either for that reaffirmation. The company’s stock is down 19 point from its 52-week high of 34.08.
Apple, for example, posted revenue of $9.6 billion and net quarterly profit of $1.58 billion. These results compare to revenue of $7.1 billion and net quarterly profit of $1 billion, in the year-ago quarter.
Although, looking at the company’s stock (NasdaqGS:AAPL), it’s down almost 50 points from its 52-week high of 202.96.
And what about eBay (NasdaqGS:EBAY)? With news that eBay’s Chief Executive Meg Whitman is close to retirement, what lies ahead for the company’s stock? It too, is down 15 points from it’s 52-week high of 40.73.
Just look across the rest of the tech sector…
Oracle and Microsoft are down, hovering between their 52-week high and low.
Sun, DELL, and Cisco are dancing around their 52-week low.
IBM is heading upward, but still plays the middle.
At the very least, perhaps there’s innovation and inspiration in the future. According to PricewaterhouseCoopers, Venture funding hit $29.4 billion in 2007.
More at CNET and Scobleizer.
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Wait for the 1Q08 results! + first economic forecasts for 2008 WW. I think some have a idea of a possible recession (not only USA, see what happened with the GBP/Euro exchange rate after some Trichet talk) but we need more reliable data and wait for the full 6-8 months (as many economists advised), because only then it is visible what damage has been done due to the ‘turbulences’ on the stock markets/financial markets/housing markets.
WORD.
- regards Michael.
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