Tech stocks: some help from Yelp?
Tech stocks may see some of the buzz generated by the successful IPO of Yelp, prospects of a Facebook IPO, and the boost in the Nasdaq. Among tech stocks, Microsoft may benefit the most.
Itâ€™s an exciting time to be in technology, as theÂ initial public offering, the buzz overÂ FacebookÂ and the Nasdaq crossing theÂ 3,000 markÂ attest.
Â Some of that excitement may rub off on other technology stocks, particularlyÂ Microsoft, whose Windows 8 shows itâ€™s ready ready to battleÂ AppleÂ by offering an operating system incorporating touchscreen technology, Nomura research analyst Richard Sherlund told CNBC Friday.
Â Sherlund, who saw the preview of Windows 8 at a recent conference in Barcelona, thinks it â€ślooks pretty good.â€ť
However, â€śmost people still dislike Microsoft.Â They think itâ€™s AppleÂ versus Microsoft. Thatâ€™s probably true for probably 25 percent to 30 percent of the market thatâ€™s very consumer-oriented with the iPad,â€ť said the analyst, who has a $37 price target on Microsoft.
Â â€śThere is another 70 percent to 75 percent of the market where Microsoft has a lot of strength and theyâ€™re finally showing up to the game with a product that offers touch as well as the ability to use Office [its software suite] that will create a very exciting upgrade cycle,â€ť he said.
Â Oracle, on which he has a â€śbuyâ€ť rating, showed it was â€śdefocusedâ€ť in its previous quarter, focusing more on hardware.
Â â€śThey have to put the salesforce back to what theyâ€™re good at, selling software, and build more of their own direct hardware sales organization,â€ť Sherlund said. Heâ€™s â€śa little more optimisticâ€ť about Oracleâ€™sÂ quarter that ended in February.
He sees a â€śwave of IPOs comingâ€ť in technology, particularly in enterprise-oriented companies. With the growing importance ofÂ cloud computingÂ and social networking â€śyouâ€™re seeing the consumerization in a lot of enterprise IT,â€ť the analyst said.