Chris Cantell Discusses Technologies: Tech gloom bigger than expected by Silvia Szarkova

That was IBM that managed it- break the ice- and reached a big surprise for the whole Wall Street. They unexpectedly reach a healthy profit in the third quarter of the year 2008. They did it through the unstable financial situation worldwide with no positive or optimistic views to the future. But it seems like change the current unpleasant situation is something like impossible- even the breakthrough, in spite of some positive new, there is still no chance to improve this situation- simply, there is not enough of what rose IBM for a while for the whole technological world. The gloom still remains.

On Thursday, tech stocks fell back, IBM was no exception. Its shares fell 1.55 dollars or 1.7 percentage point and closed at 89 dollars, so it deformed the Dow Jones Industrial Average, which counts also include IBM and dropped by 7.3 percent. The technological layer of Nasdaq fell 5.3 percent.

According to the some experts of the field, IBM could possibly deal with problems in upcoming year of 2009, especially when the financial conditions won’t improve and the climate of spending and lending will remain unstable.

Full result of the former period will be revealed on October, 16, but in a short announcement pre-issued by IBM earlier, it is stated that profit per share was 4 cents higher than the Wall Street forecast. Analysts fear that the most negative consequences will reflect or completely shown up in results of the last quarter.

Rick Hana, analyst of Morningstar Inc. says: “There's still a lot of uncertainty out there about how long this credit crisis will play out. “

Some kind of explanation of IBM sudden rise, could be that one showing up in its accountancy- they get amost half of their revenue from annuity- payments from long- term contracts- this cool also explain the relative expected health in final result of the 2008. But in this unstable crisis managering there are many questions that apperar with the future.


related story: http://news.yahoo.com/s/ap/20081009/ap_on_hi_te/ibm_tech_spending;_ylt=AoIZkAZf7ZkxHx80ufI_vfus0NUE

by Silvia Szarkova for PocketNews (http://pocketnews.tv)

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