NEW YORK, July 4 (Reuters) - Despite the recent share price declines for PC-related companies, there are plenty of reasons to be upbeat about their stocks, according to Barron's financial weekly.
The big companies in the PC group have all experienced declines so far this year, ranging from 4 percent for Intel Corp to 44 percent for Nvidia Corp. On average, the major PC companies fell 23 percent for the first half of 2010, said Barron's in its July 5 edition.
Stocks have been hit by concerns about the economic recovery and low consumer demand. Tech stocks also tend to have high exposure to the euro, and that currency's decline against the dollar will hit earnings, according to Barron's.
Still, business spending on PCs remains strong and Microsoft Corp has reported stronger-than-expected demand for its Windows 7 software.
Microsoft also has $47 billion in cash, plus short and long-term investments, close to a quarter of its stock market value. The stock has suffered from bad press lately but it will continue to benefit from new-product cycles in Windows, Office and Bing, said Barron's.
(Reporting by Helen Kearney; editing by Gunna Dickson) Keywords: COMPUTERSTOCKS/ (helen.kearney@thomsonreuters; +1 646 223-6124; Reuters Messaging: helen.kearney.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The big companies in the PC group have all experienced declines so far this year, ranging from 4 percent for Intel Corp to 44 percent for Nvidia Corp. On average, the major PC companies fell 23 percent for the first half of 2010, said Barron's in its July 5 edition.
Stocks have been hit by concerns about the economic recovery and low consumer demand. Tech stocks also tend to have high exposure to the euro, and that currency's decline against the dollar will hit earnings, according to Barron's.
Still, business spending on PCs remains strong and Microsoft Corp has reported stronger-than-expected demand for its Windows 7 software.
Microsoft also has $47 billion in cash, plus short and long-term investments, close to a quarter of its stock market value. The stock has suffered from bad press lately but it will continue to benefit from new-product cycles in Windows, Office and Bing, said Barron's.
(Reporting by Helen Kearney; editing by Gunna Dickson) Keywords: COMPUTERSTOCKS/ (helen.kearney@thomsonreuters; +1 646 223-6124; Reuters Messaging: helen.kearney.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.