The technology sector and its related exchange traded funds (ETFs) are demoralized by ill tidings in some of the industry’s top firms.
Dismal Numbers. The world’s largest chip maker, Intel Corp. (INTC), reported a 23% drop in fourth-quarter revenue to $8.2 billion, and on Thursday it reported a 90% drop in net income to $234 million, for the fourth quarter compared to the same period last year when it earned $2.3 billion, reports Ashlee Vance for The New York Times.
Analysts comment on Intel and its peers on how the PC industry copes with smaller orders from channel partners and retailers that sell computers that had to reduce inventory. But Intel plans to deal with the situation by spending more money on advancing its manufacturing facilities.
Google (GOOG) has announced job cuts, the first permanent ones it its history, reports Murad Ahmed for the Times Online. Worldwide, 100 recruiters would be let go, and it has also cut contractors and temporary staff.
Apple Concerns. Apple Inc.’s (AAPL) stock continued to drop on Thursday on top of falling 11% in late trading Wednesday after it announced the medical leave of Steve Jobs, founder and Chief Executive Officer of Apple, writes Dina Bass and Connie Guglielmo for Bloomberg.
Tim Cook will oversee the company in Steve Jobs’ absence. In case Jobs does not return, Apple is likely to use Cook for his operational strengths and other apt leaders for design and marketing.
- iShares Dow Jones US Technology (IYW): down 3.0% year-to-date; holdings of 6.6% in Intel, 5.9% in Apple
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.