Big Money's View of 'Great' Tech Earnings
Posted Apr 17, 2008 12:15pm EDT by Aaron Task in Investing, Internet, Semiconductors, Information Technology
Related: IBM, INTC, EBAY, GOOG, QQQQ
Strong earnings and solid guidance from Intel, IBM, and eBay this week have encouraged tech investors. But hold the confetti, says James Altucher, managing director of Formula Capital, a fund of funds.
Altucher, also an author and columnist for The FT and TheStreet.com, notes each of those "better-than-expected" results came with some caveats:
* Intel only cleared a bar it had brought down with its weak margin guidance in early March;
* IBM's services division had paltry year-over-year growth and its long-term bookings were down, and;
* eBay's guidance wasn't spectacular and its active user growth has come to a near standstill.
Altucher is far from bearish on tech stocks: He owns the QQQQs and believes the sector's leaders like Google are great long-term bets. But Altucher's lack of excitement about even the "best" technology earnings is an example of why the "hot money" is keeping its focus elsewhere. |
