The Nasdaq outpaced the other major indexes Friday, with Microsoft providing a strong tailwind.
In fact, investors turned noticeably bullish on tech after the software giant reported its quarterly results. Microsoft said profits fell, but investors were more interested in its successful efforts to cut costs and they also liked hearing that the release of its Windows 7 operating system was on track.
Considering the Technology SPDR is up about 21% over the past month some investors are asking if tech has gone too far too fast.
According to Oppenheimer technical analyst Carter Worth it hasn’t. He thinks tech still has room to run. A lot of room.
“Tech leads the market in principle," he says, "and semi’s lead tech. It happened in the ‘02 – ‘03 market and I think we’re seeing it again. I’d stay with the relative outperformers.”
Of course not everyone is bullish. Karen Finerman sure isn’t. She says, “although it’s nice to see Microsoft up, in my opinion they’re higher on what I consider a weak report. I’m cashing out.”
Pip Coburn of Coburn Ventures Founder & CEO sees the space a little differently. He anticipates a new trend in which tech investors turn away from what he calls lower quality companies into higher quality names.
