Tuesday, January 29, 2008

Cramer says to dump tech

Has tech had it?

Apple simply didn't do that well. Google's stock is floundering even if Google isn't. Garmin's been pretty much destroyed. Microsoft's in the same place it started after that great quarter. Texas Instruments' surprises to the upside and does nothing; same with Corning. VMWare's simply awful, dragging down EMC, which I unfortunately on for Action Alerts PLUS, to a below market multiple on 2008 earnings. IBM preannounced up and then beat the preannouncement and nobody cares and Intel's just awful.

Which leads me to conclude that, yes, tech has indeed become pretty much irrelevant. The big growth drivers, exciting product cycles, big innovations, don't exist. eBay, IACI and Yahoo! are just pathetic, all without leadership and declining earnings. Nobody cares about new kinds of cell phones or music or movie deliveries. It is all just too darned competitive.

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