×

Is Tech Recession Resistant?

You'd think a weak economy would drag down computer sales. But that doesn’t seem to be the case.

While most retailers saw bleak sales this back-to-school season, consumer electronics chains saw renewed demand for notebook personal computers, according to a report from market research firm NPD Group.

Within that category, thin and light netbooks were a big draw, accounting for 14 percent of all notebook units sold for back-to-school. That was up from just less than 2 percent of sales last year, NPD said.

Also, Google Chief Eric Schmidt said on Wednesday that the worst of the advertising recession is over, and pointed to signs of a recovery in both the U.S. and Europe, sending shares up 3 percent.

Speaking to a group of reporters in New York along with Google co-founder Sergey Brin, Schmidt said that the largest U.S. Internet search engine has increased its hiring and investment in anticipation of a recovery.

Earlier on Wednesday, Oppenheimer raised its price target on Google shares by 15 percent to $565 and maintained its "outperform" rating on expectations of strong third-quarter results. Google reports earnings on Oct. 15.

What’s the tech trade?

Pete Najarian is more interested in the Google news than the computer sales. "I’m watching Google, he reveals, which surged through the $500 level, as well as ValueClick.


______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to fastmoney@cnbc.com.

Trader disclosure: On October 7, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), BTU); Terranova Owns (NOV), (MOS), (JPM); Terranova Is Short (CCL); Terranova Is Short (WYNN); Terranova Is Short (GRMN); Terranova Owns Dec. Gold Futures; Terranova Owns March Sugar Futures; Terranova Owns Crude Futures; Seymour Owns (ACI), (AA), (STD), (BX), (BAC), (SBUX); Seymour Owns (RTP); Najarian Owns (C) Calls; Najarian Owns (BRCD) Call Spread; Najarian Owns (DFS) Calls; Najarian Owns (DELL) Call Spread; Najarian Owns (GE) Calls; Najarian Owns (JPM) & Short (JPM) Calls; Najarian Owns (HMY) Calls Spread; Najarian Owns (LAZ) & Short (LAZ) Calls & Long (LAZ) Put Spread; Najarian Owns (MSFT) And Is Short (MSFT) Calls; Najarian Owns (MYL) Calls; Najarian Owns (PLCM) Call Spread; Najarian Owns (TEVA); Najarian Owns (ORCL) & Short (ORCL) Calls; Najarian Owns (RIMM) Call Spread; Najarian Owns (WFC) Puts; Najarian Owns (YHOO) Call Spread; Najarian Owns (DFS) Calls

For Deborah Weinswig:
Citigroup Global Markets Inc. acted as a joint bookrunner on the announced debt offering of (WMT)
Citi Owns (TGT)
Citi Owns (SKS)
Citi Co-Managed An Offering Of Securities of (WMT)
Citi Has Received Compensation From (M)
Citi Has Received Compensation From (TGT)
Citi Has Received Compensation From (WMT)
Citi Has Received Compensation From SKS)
Citi Expects To Receive Compesation From (WMT)
Citi Has Received Compensation From (COST)
Citi Has Received Compesation from (HD)


CNBC.com with wires