Apple and Ebay last night rang a note of caution with their 2006 forecasts. And given their recent stock price increases and heady valuation you can't really blame them. For they are now merely acting as the mature public companies that they are and being careful to manage the markets and manage their bubbling valuations.
So, while both of them announced stellar results for the last quarter of 2005, both of them also refused to be overly bullish about 2006. This disappointed investors and analysts who have been justifying their ever appreciating stock prices by pushing ever more bullish outlooks. And both their stock prices sank.
At one point the company's have to take charge and they have. By being more cautious about their outlloks for 2006 they have taken heat out of their heady valuations and set achievable and sensible objectives for this year. Objectives that only a few years ago would have looked highly ambitious. So neither of them deserve to get too punished for it. And 2006 will be a good year for both companies.
The market will correct and tech stocks across the board will get revalued downwards, then the tech bull market can resume in a somewhat more measured and realistic manner (see sister channels businessuncut daily for more on tech market directions).
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment