Most people with a college education would guess that the near-spectacular results posted by Research In Motion (RIMM) and Oracle (ORCL) are a sign that the broad tech industry has not been hit by the problems at financial services companies and banks.
But, what is hidden a bit is the breadth of strength still pushing tech along. Oracle and RIMM are at the opposite extremes of hardware and software sales. Oracle sells million dollar database management and customer control products and services. Their upgrade licenses can be worth many times the initial license, so revenue for one customer can stretch over several years.
At RIMM, the product is an "every man" business special. The Blackberry costs about $300 and the service fee is worth less than the price of a cup of coffee a day.
Both ends of tech are not just holding up. They are accelerating.
What will make the tech "trifecta" complete is a strong report on PC sales from Hewlett-Packard (HPQ) or Dell (DELL). Good news on Microsoft (MSFT) Vista or Office would do. Sales of PCs and servers are the great central avenue on the technology map. Companies big and small buy what MSFT and HPQ have to sell.
But, even without reports from the hardware operations, tech has legs.
Douglas A. McIntyre
The Average American Is Losing Momentum On Their Savings Every Day (Sponsor)
If you’re like many Americans and keep your money ‘safe’ in a checking or savings account, think again. The average yield on a savings account is a paltry .4%1 today. Checking accounts are even worse.
But there is good news. To win qualified customers, some accounts are paying more than 7x the national average. That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn a $200 bonus and up to 7X the national average with qualifying deposits. Terms apply. Member, FDIC.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.