War Threatens Tech Stock Growth

[WnXP2002]

Recent growth in the share price of computer and networking companies is likely to be hit by a war against Iraq, market analysts have warned.

Computer and networking companies are among the best performing US stocks, with Lucent Technologies, EMC and Yahoo leading the Standard & Poor's 500 Index this year.

But Goldman Sachs analysts have warned that this growth could be undermined by war in the Middle East, according to Bloomberg.

The threat of war has hurt the performance of technology companies, making it hard for them to see how customers will act in the second half of the year.

Some industry watchers think a war that ends quickly and successfully for the US will clear the way for companies to spend more - on computers, software and related equipment - later in the year.

But others argue that technology companies could fall the furthest in any decline triggered by economic or political news.

Story courtesy of vnunet.com