Tech Stocks and the Google Bellwether
There has been quite a bit of noise lately in the tech sector, as tech stocks, which are usually pretty volatile have shown incremental uptick bumps that were not exactly expected.
This is because several of the main tech stocks have shown decent profits considering the recessionary period.
Luckily, Wall Street was not having high expectations, so many of the big high-tech companies like Intel, Cisco, HP, Apple's and others reported decent profits beating the street.
While others like Microsoft showed dismal losses, mostly because they do not have any new products coming out right now, and the sales of new personal computers and laptops are currently down quite a bit, but all that will change as we come off the bottom of the recession, and the consumer starts purchasing again.
Another interesting thing that has occurred in the tech sector is the Microsoft/Yahoo 10-year service deal, where they will be working together on click ad revenue to compete with Google.
It appears that the Federal Trade Commission will allow this partnership to go through and one has to ask; will it affect Google? The answer is yes, and let me explain why.
You see, Microsoft's new BING Search Engine has a 55% higher click through rate on click ads.
That means even with Yahoo and Microsoft controlling 26% of the search space together, they are giving their advertisers more bang for their buck.
As soon as all the Ecommerce websites figure this out Google will have to lower its prices and in doing so it will in essence lower its profits as well.
Now the tech sector moves pretty fast, and the people who work with the e-commerce do as well, so this could affect third-quarter profits for Google and for sure fourth-quarter profits.
Since Google is a bellwether in tech stocks this could cause the tech stocks to go down at the end of the third quarter or the end of the fourth quarter.
This is something we will have to be looking for.
Meanwhile, Google has some new interesting things coming out to help it improve its customer loyalty, and we will have to see how those go? Please consider all this.
This is because several of the main tech stocks have shown decent profits considering the recessionary period.
Luckily, Wall Street was not having high expectations, so many of the big high-tech companies like Intel, Cisco, HP, Apple's and others reported decent profits beating the street.
While others like Microsoft showed dismal losses, mostly because they do not have any new products coming out right now, and the sales of new personal computers and laptops are currently down quite a bit, but all that will change as we come off the bottom of the recession, and the consumer starts purchasing again.
Another interesting thing that has occurred in the tech sector is the Microsoft/Yahoo 10-year service deal, where they will be working together on click ad revenue to compete with Google.
It appears that the Federal Trade Commission will allow this partnership to go through and one has to ask; will it affect Google? The answer is yes, and let me explain why.
You see, Microsoft's new BING Search Engine has a 55% higher click through rate on click ads.
That means even with Yahoo and Microsoft controlling 26% of the search space together, they are giving their advertisers more bang for their buck.
As soon as all the Ecommerce websites figure this out Google will have to lower its prices and in doing so it will in essence lower its profits as well.
Now the tech sector moves pretty fast, and the people who work with the e-commerce do as well, so this could affect third-quarter profits for Google and for sure fourth-quarter profits.
Since Google is a bellwether in tech stocks this could cause the tech stocks to go down at the end of the third quarter or the end of the fourth quarter.
This is something we will have to be looking for.
Meanwhile, Google has some new interesting things coming out to help it improve its customer loyalty, and we will have to see how those go? Please consider all this.
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