Apple, Google recovering from losses
Posted
Sep 30 2008, 03:08 PM
by
Kim Peterson
Rating:
Apple shares are looking better after a miserable day yesterday, when the biggest selloff in eight years triggered a 17% price drop and slashed $20 billion from the company's market cap. Today, shares are up 7% to $112.60.
And Google is on the mend as well after closing below $400 for the first time in two years. Shares of the search giant have climbed 8% to $412.95.
That's not to say concerns about spending on technology have disappeared. Even Microsoft CEO Steve Ballmer said today that the global financial crisis we're in will impact all companies, including his own. "No company is immune to these issues," he said.
Microsoft shares fell about 9% yesterday but today are up nearly 5% to $26.21.
Tech stocks have always been high-risk, high-reward plays, but in this economy, the risk factor is just too high for many.
"Investors are no longer selling their losers in tech, but
have turned to selling stocks that still have meat on the
bone," said S&P analyst Scott Kessler.
Other analysts said it's just easier to sell tech stocks than other stocks right now. They are among the most liquid to trade, according to Reuters.
And in the end, big tech companies have a lot of cash in the bank and very little debt, and are prepared to survive the crisis, said analyst Jeffrey Lindsay at Sanford Bernstein.
"The cockroaches of this particular nuclear winter -- if
this is one -- will be Internet stocks," he said.
