Tech stocks could suffer from excessive expectations in '08Aaron Pressman
Seems like it was only yesterday when the technology sector was beckoning as a refuge from the subprime mortgage hurricane. Well, September, anyway. How times have changed. After Cisco Systems (Symbol: CSCO) warned last month that it was seeing a slowdown in orders from its biggest U.S. customers, investors have reassessed. Now they see at least some vulnerability to the deteriorating financial conditions, if for no other reason than the fact that the crumbling financial services sector is a major customer for IT goods and services. Cisco’s down 17% over the past month, while broader tech measures, like the Technology SPDR Exchange-traded Fund (XLK), have bounced around sharply but remain off 5% to 10% since the beginning of November.
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