A Miserable Week in Tech

In the following video, senior technology analyst Eric Bleeker discusses a tech earnings season that's been light on optimism and has seen no shortage of disappointments. The big problem is that companies aren't just saying the holiday quarter might be weaker than usual while pointing a rosy picture in 2013. Instead, company after company is saying conditions look poor for several quarters ahead. 

As Eric notes, this sets up a huge showdown at the end of the year that the tech companies themselves have little control over. The slowdown holding back tech sales is coming largely from the enterprise space in North America, and it's the result of America's impending "fiscal cliff." With projections of a deep recession if the fiscal cliff comes to pass, companies don't want to invest in big projects. If, however, the fiscal cliff sees resolution at the tail end of the year and this spending is unlocked, that could mean a huge first quarter for many tech companies. But until the political situation is resolved, there will be a heavy anchor holding tech stocks back. 

Check out the video to see Eric's full thoughts. 

Looking for advice on one company sure to be hit by IT spending slowdown? Get the lowdown on Cisco in our comprehensive premium report on the company. Our report also has you covered with a full year of free analyst updates to keep you informed as their story changes, so click here now to read more.

Eric Bleeker owns shares of Cisco Systems and EMC. The Motley Fool owns shares of EMC and Riverbed Technology. Motley Fool newsletter services recommend Acme Packet and Riverbed Technology. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2082798, ~/Articles/ArticleHandler.aspx, 9/30/2014 6:38:09 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Apple's next smart device (warning, it may shock you

Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!


Advertisement