Here’s a quick recap of the beleaguered technology sector:
-
Apple is still in bear market decline and sits around 20% below its $705 peak. The stock hit a 3-month low of $525.62 on 11/15 and still has technical damage.
-
Social media stocks like Facebook, Zynga, and Groupon that were promoted as a sure thing – are down between 45-90%.
-
Hewlett-Packard shares hit a 10-year low Tuesday. The company took an $8.8 billion charge claiming more than $5 billion of that amount was because of false accounting from the value of Autonomy.
-
Intel’s share price is down -17% since August and Paul Otellini, its CEO plans to retire in May 2013. The chipmaker’s business, like others that relied heavily on computers, is deteriorating as technology shifts away from desktop computing to mobile.
-
After leading most of the year, technology stocks are now underperforming major stock market benchmarks like the S&P 500 and the Dow Jones Industrial Average.
Tech is Big…Very Big
Technology is an important component of the broader stock market – making up 18-22% of sector representation. That’s much larger compared to other sectors including financials and healthcare. When it was rallying, the tech sector lifted the market. Conversely, its recent decline has acted as a major performance drag.Read Full Article>>>