News

Tech Stocks Continue Downward Spiral

Technology stocks continue doing their version of the limbo - “how low can you go?” - and the answer seems to be that nobody knows.

It’s not just dot-coms, either, that are feeling the heat. Two industry leaders -- Microsoft and Intel -- were ducking their heads lower under that limbo pole Thursday.

Intel, citing cancellations of large orders from customers worldwide, said it now expects sales to be flat or barely above or below the $8.7 billion it recorded last quarter. Intel had earlier estimated that fourth-quarter revenue would be up between 4 and 8 percent.

That announcement followed a stinging analysis of Microsoft by Wall Street analyst Rick Sherlund of Goldman Sachs, who lowered his estimate of Microsoft’s fiscal 2001 earnings per share from $1.91 to $1.88. This had the net effect of dropping Microsoft’s stock price more than 6 percent.

Sherlund based his estimate on a belief that PC sales, at least in the U.S., were going to slump, leading to fewer sales of Windows on those PCs. He did, however, keep his “market outperform” rating on Microsoft stock.

These announcements, along with bad news for other industry leaders like Motorola, Apple and Gateway, sent the Nasdaq reeling again. The tech-heavy Nasdaq Composite lost 43.84 points, or 1.57 percent of its total value, on Thursday. -- Keith Ward

About the Author

Scott Bekker is editor in chief of Redmond Channel Partner magazine.

Featured

  • Microsoft Resumes Rerelease of Windows 10 Version 1809

    Microsoft on Wednesday once more resumed its general rollout of the Windows 10 version 1809 upgrade, also known as the "October 2018 Update."

  • Microsoft Ups Its Windows 10 App Compatibility Assurances

    Microsoft gave assurances this week that organizations adopting Windows 10 likely won't face application compatibility issues.

  • SharePoint Online Users To Get 'Modern' UI Push in April

    Microsoft plans to alter some of the tenant-level blocking capabilities that may have been set up by organizations and deliver its so-called "modern" user interface (UI) to Lists and Libraries for SharePoint Online users, starting in April.

  • How To Use PowerShell Splatting

    Despite its weird name, splatting can be a really handy technique if you create a lot of PowerShell scripts.

comments powered by Disqus
Most   Popular

Office 365 Watch

Sign up for our newsletter.

Terms and Privacy Policy consent

I agree to this site's Privacy Policy.