Tech Stocks Recover, But What Will Next Week Bring?
After a down and up and down week, tech stocks had a solid recovery yesterday, keeping pace with or even surpassing the Dow Jones Industrial Average gains of nearly four percent.
Can anyone predict what will happen next?
Probably not — including this creepy dude to the right — so let’s look backward at how tech stocks fared yesterday:
Google shares were up 2.4 percent, Microsoft 4.1 percent, Amazon 2.2 percent, eBay 3.6 percent, LinkedIn 4.1 percent and Pandora 3.7 percent.
Most interesting were the two big stock losers of late, Yahoo and AOL, both of which rose even more. They were up 9.3 percent and 12.2 percent, respectively.
AOL’s rise had to do with the New York online media company’s announcement of a stock buyback program yesterday, while Yahoo’s was perhaps due to investors questioning the steepness of the recent valuation falloff at the Internet giant.
There is no question that while most of these companies had decent quarterly returns recently, they have all collectively gotten smacked hard by the market volatility.
The financial turmoil has also caused some to speculate on the delay or cutting back of the IPOs of high-profile digital companies — most especially Groupon and Zynga.
Here’s one certainty: Both the social buying start-up and the online gaming phenom are going to get out, if not in September, then soon after.
As for Silicon Valley venture firms cutting back from their aggressive and eye-popping fundings of start-ups? As a new meme has been speculating this week: They still seem to be partying like it’s 1999.