Why technology is not the future

valuations

Many blue chip technology stocks are seeing their share prices shoot up - even though their accounts are in the red

Technology bounced back in 2003. The share prices of European blue chip technology companies appreciated handsomely, with Ericsson, ASML, Infineon and Alcatel all at least doubling from their lows. For all these companies, though, 2003 will be another year of red ink in the accounts. All will record losses. Their stock prices have, however, shot up as the strengthening global economy encouraged investors to anticipate a recovery in industry profits in 2004 and beyond. The volatility of revenue growth and profit margins means forecasting the extent of the pick-up in technology earnings wi...