A Miserable Week in Tech
In the following video, senior technology analyst Eric Bleeker discusses a tech earnings season that's been light on optimism and has seen no shortage of disappointments. The big problem is that companies aren't just saying the holiday quarter might be weaker than usual while pointing a rosy picture in 2013. Instead, company after company is saying conditions look poor for several quarters ahead.
As Eric notes, this sets up a huge showdown at the end of the year that the tech companies themselves have little control over. The slowdown holding back tech sales is coming largely from the enterprise space in North America, and it's the result of America's impending "fiscal cliff." With projections of a deep recession if the fiscal cliff comes to pass, companies don't want to invest in big projects. If, however, the fiscal cliff sees resolution at the tail end of the year and this spending is unlocked, that could mean a huge first quarter for many tech companies. But until the political situation is resolved, there will be a heavy anchor holding tech stocks back.
Check out the video to see Eric's full thoughts.
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The article A Miserable Week in Tech originally appeared on Fool.com.Eric Bleeker owns shares of Cisco Systems and EMC. The Motley Fool owns shares of EMC and Riverbed Technology. Motley Fool newsletter services recommend Acme Packet and Riverbed Technology. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.