It’s time for the tech sector to put its money where its mouth is. Many have pointed to this sector as a post-recession leader, and while exchange traded funds (ETFs) have outperformed, the real proof will be in earnings season. This week, a number of big names will be revealing the numbers.
The earnings that have come out so far have been positive:
- Google’s (NASDAQ: GOOG) profit jumped 37% in the first quarter and said it has a “strong M&A pipeline in place.”
- IBM (NYSE: IBM) reported a 13% increase in profit and raised its outlook for the year. IBM has become a leading example of the postmultinational global corporation, reports Steve Lohr for The New York Times. IBM now makes two-thirds of its revenue abroad, with revenue from emerging markets increasing by 20% in the first quarter.
- Intel (NASDAQ: INTC) said that the first quarter was its “best first quarter ever” and total income surpassed $2.8 billion, an increase of 288%. [Intel’s First-Quarter Results.]
Like Intel’s better-than-expected earnings report last week, Apple’s (NASDAQ: AAPL) results after the close today are expected to be fruitful, backed by strong Mac and iPhone sales, writes Larry Diggan for ZDNet. Additionally, Yahoo (NASDAQ: YHOO) and Microsoft (NASDAQ: MSFT) revenue results will also be rolling out today and Thursday, respectively.
All those strong earnings have prompted tech companies to step up their hiring, according to The Wall Street Journal. In some cases, companies are locked in a heated battle for the biggest brains. It’s a nice change of pace for an industry that just one year ago was implementing mass layoffs. [4 Reasons Tech Could Go Boom.]
For more information on the technology sector, visit our technology category.
- iShares S&P North America Tech-Semiconductor (NYSEArca: IGW)
- Technology Select Sector SPDR (NYSEArca: XLK)
- PowerShares QQQ (NASDAQ: QQQQ)
- ProShares Ultra Technology (NYSEArca: ROM)
- First Trust NASDAQ-100 Technology (NASDAQ: QTEC)
Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.