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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.
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The forecast for technology earnings has dropped to 16percentt from 29percentt.
With uncertainty rife in the financial markets and more financial services companies facing difficulties, Forrester Research scrambled this week to revise its forecast for technology spending in the United States.
[C7.] Stocks Fall on Rising Oil Prices Rising oil prices and disappointing forecasts for the technology sector sent stocks lower.
"The stronger-than-expected earnings reports from Yahoo! and AMD bode well for the earnings season," said Arthur Hogan, chief market analyst with Jefferies & Co. "It could prove to be even better than the most optimistic forecasts, at least for technology and financial stocks".
In the rapidly growing, competitive information and communications technology market, demand forecasting for new technologies is difficult, yet important.
The earnings forecast for the technology sector is now a decline of 11percentt in the first quarter, 10percentt in the second quarter and an increase of just 1percentt in the third quarter.
FDM: What is your forecast for the technology sector in 1998?
Earlier this month, South Korea's Woori Investment & Securities cut its earnings forecast for the technology giant.
In particular, Mr. Chilton forecast growing demand for technology experts.
This is valuable because it allows us to make forecasts for any given technology with a clear understanding of the quality of the forecasts.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com