As part of the tech sell off, IMHO, the nets sold off too far, a knee jerk reaction.
Think about it, Yes, PC sales may be slowing. That's bad for Dell and others, in the short run, but to me, does not necessarily signal a problem for net stocks.
Many PC buyers are first time buyers, Good for net growth. What may not be counted very well is the sale of "pre-owned" computers. Many new buyers are also replacing their PC's and selling the old ones.
There are still many PC's being added by people who want to log on, and even with a slow down, there should be enough PC's being sold to keep AOL growing strongly.
Just a short term, over reaction (although KOSOVO bombing could delay a bounce back).
Regards
Brew |
