It's so easy to paint investing with broad brushstrokes, and say "tech" is strong, or "tech" is bad, but with Intel, IBM, eBay and Google all reporting this week, we get to remind ourselves that the sector is made up of individual stocks and individual industries.
We're so focused on domestic recession worries, yet so many of these companies get the vast majority of their revenue from overseas. They're not insulated, since they've all suffered hits one way or another, but there are so many additional factors that investors have to take into account.
Take IBM for example: yes, there's exposure to financial services since IBM's services business is its biggest revenue generator, but the company is still trading at a 52-week high, it's enjoying big-time sales pops internationally, it's adding $15 billion to its already massive stock repurchase program, and trends are shaping up nicely for the company. So much so that the stock continues to climb today, even though it's a tech company at a year-long high.
Intel reports Tuesday and there was lots of discussion last week that bad news from Advanced Micro Devices portended badly for the world's largest chipmaker. But a better way to look at the Intel story is that AMD's news is likely because of its much larger rival, instead of an indication of weakness at its much larger rival. Intel has already issued its margin warning thanks to continued weakness in NAND flash memory.