He wouldn't mind paying forty times earnings for technology-related stocks in aggregate.
The estimate for earnings growth for technology companies has gone from 29percentt on Oct. 1 to 17percentt on Nov. 7, and to 10percentt now.
A weaker earnings outlook for technology and financial companies dragged down stock indexes on Wednesday, overshadowing speculation that the Federal Reserve would take steps to bolster the economy.
Stocks were mixed yesterday as concerns about corporate profit growth hurt old-line manufacturing concerns even as enthusiasm about the earnings prospects for technology companies continued to rise.
First, even after slashing their revenue and earnings forecasts for technology companies, analysts have long-term expectations that are still far too optimistic, he said.
PAGE b1 DELL'S PROFIT DROPS Dell's profit fell 5 percent in the fourth quarter, despite a revenue increase of 11 percent, breaking with what has been a strong earnings season for technology companies.
Still struggling to keep up with its competitors, Dell said on Thursday that its profit fell 5 percent in the fourth quarter, breaking with what has been a strong earnings season for technology companies.
In his only direct comment today on valuations in the market, Mr. Greenspan noted that securities analysts had projected that earnings growth for technology companies would be double that for the other companies in the Standard & Poor's 500-stock index.
