Tech stocks beat analysts' earnings or sales estimates in the first quarter, creating a flurry of buying activity that led to 2.4 percent increases in the last five trading days, TheStreet.com reported Wednesday.
Trading house Goldman Sachs observed in an April 18 research note that "our checks and results from February bellwethers point to a continued robust (information-technology) spending backdrop."
The news wasn't all positive for tech-related businesses. According to MarketWatch.com, shares of Lexmark tumbled 14.4% to close at $32.76 after the imaging and printing company reported a lower profit. Lexmark was the top decliner on the Standard & Poor's 500 Index.
Netflix was also down, after a lower-than-estimated sales report. Shares shed 9% to close at $228.91. Analysts don't expect a quick turnaround as the company looks to spend money expanding its Instant Streaming movie library.
But big earners like Microsoft, Cisco and Intel all performed strongly, causing many analysts to generally favor tech stocks on the day.
Tech Stocks On The Rise Has Investment Booming
Apr 27, 2011, 12:14 by John Steele