IT companies including AMD, Nvidia, Intel, Google, Microsoft, Yahoo and many others went severely down on the last trading day of this disastrous week.
Some of them went down by more than 10 percent and even 30 percent during the week. The U.S. Senate will likely push the $700 billion bailout plan and this should happen on Monday, but at this moment Wall Street doesn’t think this is enough to push the economy back into growth.
IT companies will probably have to reconsider their production and sales estimates for the next year, as they will likely suffer from the weak market and lack of consumer confidence that the crisis will soon be over.
If you haven’t heard by now, we are in recession; the whole world is, and this nasty word is slowly swimming over the ocean and starting to affect Europe and Asia. Less spending on houses and cars will most certainly mean that people will spend less on new notebooks, computer parts and iPods.
This is one of the worst financial crises that currently shakes all parts of the industry, including IT, and the worst is probably yet to come. If you want to look at it from the bright side, after the storm (or better yet tornado) comes the sun (hopefully not only THE Sun).