For tech investors, the New Year has started out with a bang. The fiscal cliff resolution has sent all stocks as well as broad tech measures like the Technology Select Sector SPDR (ARCA:XLK) surging much higher. That good news about avoiding the cliff comes on the back of strong tech-related holiday retail sales and overall third quarter earnings. Kicking off 2013, the tech sector is continuing its strong push to regain its growth moniker. Here's your weekly tech recap.
Top Investment Trends For 2013: We go over a few investment trends for you to think about for 2013.
It's CES Time
The Consumer Electronic Show (CES) could be considered the Super Bowl for the technology industry. The Las Vegas-based trade show is where many electronics giants come to show off their latest "gotta-have it" gadgets and devices. This year's show promises to be another big showcase for cutting edge technology.
One of the more interesting devices comes from Chinese PC manufacturer Lenovo. After buying IBM's (NYSE:IBM) hardware business back in the early 2000s, Lenovo has become one of the largest PC manufacturers on the planet and its latest device showcases just how serious it is. That would be its new 27 inch tablet PC. Think of it as an iPad, but on steroids. The razor thin and flat beefed-up tablet is designed to allow multiple users to, swipe, type and work at the same time. The device is aimed at the home consumer market as well as graphic/CAD designers who need to work in teams. Lenovo hopes to have the new tablet on sale this summer.
Also debuting a tablet PC is non-tech firm 3M (NYSE:MMM). Its monster 84 inch tablet is aimed at the business market, with 3M selling the technology to other companies that build them into devices. Hopes are that a retail store or airports will adopt the devices for product demonstrations or information.
Either way, tablet PCs could be coming to your living room sooner than later.
Those devices may be visually faster - along with your smartphone, tablet and other mobile devices. Chip maker, NVIDIA (Nasdaq:NVDA) made a splash at CES when it unveiled its new Tegra 4 mobile processor. The new chip will be six times faster than its predecessor and feature strong graphics processing and 4G LTE worldwide support. The chip is expected to be a game changer.
SEE: A Primer On Investing In The Tech Industry
No Antitrust Here
After a two-year investigation by the Federal Trade Commission (FTC), Internet giant Google (Nasdaq:GOOG) received some good news. The firm will receive no penalties related to its changes to its search engine. While the feds found that some of Google's recent changes were "problematic and potentially harmful to competition," the FTC ultimately did not bring a lawsuit against the company as those changes did not violate antitrust laws. The verdict is ultimately good news for Google and shareholders.
However, not everyone is happy with the verdict. Microsoft (Nasdaq:MSFT) - which runs search engine Bing and review site Yelp! (NYSE:YELP) - was not pleased and still contends that Google is not playing fair. Microsft is expected to raise more complaints with the FTC in the upcoming year.
More Shows to Watch
To avoid losing users to rival's like Coinstar's (Nasdaq:CSTR) new Redbox streaming service, Netflix (Nasdaq:NFLX) has unveiled a new deal with Time Warner's (NYSE:TWX) Warner Bros TV unit to showcase its content.
As new streaming services have launched, industry founder Netflix has had difficulty keeping up with the competition. The firm started its streaming business with mostly older films. Now it finds itself trying to regain some lost market share with more choices including original programming such as "Lilyhammer" and the upcoming "House of Cards."
Ultimately, the deal should bring in more users back to Netflix.
SEE: Netflix Has A Bumpy, Crowded Road Ahead
The Bottom Line
For investors, the tech sector is off with a bang. With the fiscal cliff non-sense behind it, investors can focus on more new ground breaking technologies and continued big deals. Overall, it's shaping up to be a very good year in tech.
At the time of writing, Aaron Levitt did not own any shares in any company mentioned in this article.
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