Tech Stocks to Keep Tanking

Chismillionaire disagrees with this article and feels Tech and Healthcare will be the best performing sectors in the next 3 year period. While the returns may not be great, they will outperform the market as a whole.

Google, Apple, Microsoft and other tech stocks will likely continue to slide until a bailout package gets passed, which won't likely happen until the House reconvenes on Thursday. Meanwhile, some Wall Street analysts think this is a buying opportunity for anyone who can wait for stocks to bottom out. But it could be tricky.

"Nobody will buy any [stocks] right now because there's a huge uncertainty. People are liquidating their positions. It's just brutal, and it will continue to be brutal until some kind of bailout package gets agreed upon," says Jeffrey Lindsay, an internet investment analyst with Bernstein Research. "But we aren't going to have a shantytown in Central Park again. It won't be like the 30s."

AppleTech analysts and venture capitalists were optimistic that Silicon Valley would escape the financial crisis unscathed, but Monday's bloody trading session paints a different picture. Shares of some of the biggest tech companies -- including IBM and Oracle -- got knocked in the cross-fire, after the House rejected a bailout package and the stock market tanked.

Still, Lindsay thinks there could be some buying opportunities for brave investors who aren't risk averse.

"There's going to be a bull market when this is over," he says. "We said Google would be a good buy if it broke $400. We don't think it will stay below $400 for very long."

That goes for other internet stocks, too.

"If this continues for a couple more days, and Yahoo falls below $15 per share, shares could be very cheap. We think eBay's extremely cheap, too," says Lindsay.

Investors might want to wait before buying Apple, though, which is grappling with its own problems. Apple opened low on Monday after a pair of analysts said the company could get hit by sluggish PC sales and slowing consumer spending. It was particularly disconcerting news ahead of the fourth quarter, which is usually Apple's strongest, thanks to holiday sales.

"People are putting the breaks on spending on everything," says Trip Chowdry, a Global Equities Research analyst. "Until oil prices are fixed, there is no way I could say Apple is a good buy. When oil returns to 2003 levels -- or $25 per barrel -- then I think Apple will be a good investment. Until that happens, I think the stock could hit $50 or $60 per share."

UPDATE: The post now includes Trip Chowdry's title information.