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.
