google) (businessinsider) (wire.kapitall.com) (marketwatch) (money.cnn.com). The trigger is the recent rally of the NASDAQ. The technology dominated stock exchange is around 11% up so far this year and reached a 11-year high. And companies in the sectors Internet services, software and electronics are hiring like crazy (bloomberg).
I don`t share this rumpus, quite the contrary. I believe that many technology stocks, including companies like IBM which are traded on the New York Stock Exchange and not on the NASDAQ, are still at the begin of a renaissance which should last some years.
Technology is getting more and more important. More and more people are using smart phones, computer tablets and other devices to surf the internet, to communicate and to download music, movies and books. Technology is conquering our households and our leisure time. Chips & software are increasingly controlling cars, household appliances and TV sets. And the use of technology to diagnose, monitor or treat diseases or medical conditions is accerlerating.
Companies have to invest into IT because they must react to a world where everything is accelerating. They have to process a deluge of data when they are dealing with competitors, exploiting chances in foreign markets and adapting to a rapidly evolving world.
If the stock market is a mirror of the economy than the growing importance of the technology industry, especially of the Internet sector, should be reflected in a rising valuation of technology stocks.