Tech stocks - recovery underway?

  1. 2,070 Posts.
    Maybe there's still downside for major tech stocks but many of the smaller stocks are so beaten down pricewise that simply surviving and showing signs of uptrend will push the stocks up to true value. It could happen quickly though and consume all the upside potential once the market realises what is happening.

    From CNN Money:
    A positive outlook from software maker Oracle (ORCL: up $0.45 to $9.50, Research, Estimates) ignited enthusiasm for technology stocks after a bruising session for the sector Monday. Contrary to the general industry forecast, chief financial officer Jeff Henley late Monday forecast a turnaround in technology spending and reiterated the company's second-quarter earnings target. Henley also said positive growth in 2003 would end Oracle's two-year revenue decline.

    Cisco Systems (CSCO: up $0.71 to $12.87, Research, Estimates) CEO John Chambers said the order backlog for products to be shipped within 90 days -- a key gauge used by analysts to assess the health of company's business and the sector -- was up from its September level. Cisco shares were the most active on the Nasdaq.

    Telecom stocks were cheered by Vodafone (VOD: up $2.19 to $17.64, Research, Estimates)'s quarterly results. Europe's largest mobile phone operator said its first-half loss narrowed and also delivered a bullish outlook for the rest of the year.

    The strong performance from technology stocks Tuesday got some cautious Wall Street watchers sounding somewhat bullish.

    "With Cisco saying that its order backlog is growing [there are] good tentative first signs that the future is getting better," Jim Glickenhaus, market strategist with Glickenhaus & Co told CNNfn's The Money Gang. "But it will still be a slow dribble."
 
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