Tough times for tech

Here's a roundup of the latest financial news and its impact on the tech sector.

Oct. 17, 2008 11:03 a.m. PT

9 min read

Think the credit crisis doesn't have anything to do with the tech industry? Think again. Credit troubles affect everything from large Silicon Valley stalwarts down to scrappy Web 2.0 start-ups. Here's a roundup of the latest financial news and its impact on the tech sector.

CNET Tech Index

Keep a close watch on the intraday and long-term performance of the tech sector, from Adobe and Apple to Xerox and Yahoo.

The week in tech layoffs

The long list of companies planning staff cuts ranges from Pandora to Tesla Motors, leaving a slew of highly trained workers looking for new opportunities.
(Posted in Webware by Don Reisinger)
October 17, 2008 8:31 AM PDT

In downturn, solar industry sees bright days ahead

Because the numbers on solar energy investments are looking better and comparatively safer, the business predicts rapid growth despite the economic crisis.
(Posted in Green Tech by Martin LaMonica)
October 17, 2008 4:00 AM PDT

Google hurdles over profit estimate

Search ad giant reports net income is well above analyst estimates for the third quarter; revenue almost matches expectations.
• IBM produces good news for weary tech sector
• AMD reports smaller loss, better revenues
(Posted in Digital Media by Stephen Shankland)
October 16, 2008 1:23 PM PDT

Red Hat: Economic crisis to boost open source

CEO Jim Whitehurst says companies consolidating their tech infrastructure and reducing spending will consider open-source software. But will it help enterprise-level providers?
(Posted in Business Tech by Alex Serpo)
October 16, 2008 7:09 AM PDT

Quarterly virtual-world funding tops $148 million

Venture capital and media investments in 12 virtual worlds have reached $493 million this year, according to a market specialist. Maybe funding isn't as low as we think.
(Posted in Webware by Don Reisinger)
October 16, 2008 6:47 AM PDT

eBay issues gloomy forecast as tech stocks tank again

Web auctioneer says fourth-quarter profit could be as low as 25 cents per share. The company earned 39 cents per share during the same quarter last year.
(Posted in Digital Media by Greg Sandoval)
October 15, 2008 1:51 PM PDT

Dark times for Web ads: Analysts cut forecasts

Online-advertising budgets are likely to be flat or decreasing, and companies such as Google and InterActiveCorp that on it can expect to feel the pain, financial analysts say.
(Posted in Digital Media by Stephen Shankland)
October 15, 2008 7:29 AM PDT

Tech stocks give up some gains

Amazon shares falls nearly 10 percent, while Apple gets no love despite MacBook announcements, in a day that saw investors selling off stocks across the board.
(Posted in Business Tech by Dawn Kawamoto)
October 14, 2008 2:04 PM PDT

If Intel's worried about suppliers...

Are there any IT companies too big to fail? Don't bet on it--and that's the message coming out of Intel's earnings.
(Posted in Coop's Corner by Charles Cooper)
October 14, 2008 12:25 PM PDT

Verizon's CEO is optimistic despite economic crisis

"We expect some impact," says Ivan Seidenberg. But he foresees people continuing to spend on what Verizon provides: wireless and broadband services.
• EA's Riccitiello sees bright skies ahead--no, really
• Sirius XM chief: Yes, we will be profitable
(Posted in Wireless by Marguerite Reardon)
October 14, 2008 11:33 AM PDT

Dow soars with Apple, Microsoft among double-digit gainers

Investors cheered Monday as the beleaguered index gets back up above the 9,000 mark by surging 936 points in its largest single-day point gain ever.
• Gartner and UBS provide a mixed view on IT spending
• Gartner on IT vs. the economic crisis
(Posted in Business Tech by Dawn Kawamoto)
October 13, 2008 1:26 PM PDT

Entrepreneurs are worried, but some are not worried enough

Overconfidence remains strong among start-up CEOs, a quick survey shows. A little more fear might help more young companies survive the tanking economy.
(Posted in Webware by Rafe Needleman)
October 13, 2008 10:00 AM PDT

Taking stock of stock losses, 1999-2008

If you bought shares in most tech companies in October 1999 and sold them today, you would have lost money. And then there's inflation.
(Posted in Business Tech by Declan McCullagh)
October 13, 2008 4:00 AM PDT

A very long week of losses

What with one stock sell-off followed by another, the tech sector's biggest names have all taken their lumps. Ditto for the start-up crowd.

Tech's next step: More M&A?

The last time Silicon Valley got hit by this kind of a financial storm, it remade itself and emerged stronger. Will Darwin apply this time around as well?
(Posted in Coop's Corner by Charles Cooper)
October 10, 2008 12:33 PM PDT

No economy too dire for these developers

Far from Wall Street, attendees of London's Future of Web Apps confab aren't panicking. Is it entrepreneur's pluck or old-fashioned naivete?
• AOL to developers: Put passion over profit
(Posted in The Social by Caroline McCarthy)
October 10, 2008 12:00 PM PDT

Video: Web 2.0 casualties?
Fans of Twitter, Pandora, Skype, Zillow, and seven other Web
companies had better hope these start-ups find creative business
plans to weather the financial downturn.

11 troubled Web companies: The next Kozmos?

Some popular Web companies may be vulnerable to the economic slowdown. Do they face an ill fate similar to that of the beloved delivery service of the last bubble?
(Posted in Webware by Rafe Needleman)
October 10, 2008 7:30 AM PDT

Microsoft exec: Challenging times play to our strengths

Microsoft Business Division President Stephen Elop says the software giant is trying to get the message out that it can help its customers save money in tough times.
(Posted in Beyond Binary by Ina Fried)
October 10, 2008 11:47 AM PDT

Chip forecasts head south

Industry outlook quickly getting downgraded as the economy falters.
(Posted in Nanotech: The Circuits Blog by Brooke Crothers)
October 10, 2008 10:20 AM PDT

News.com Poll

VCs throw cold water on portfolio companies

From Sequoia Capital to angel investor Ron Conway, the message is clear and persistent: prepare for the worst.
(Posted in Digital Media by Dawn Kawamoto)
October 10, 2008 7:07 AM PDT

Yahoo falls into $12 range, Dow enters 8,000 territory

The Internet company and the Dow Jones index continue to slip downhill, hitting lows they haven't seen for the past five years.
• Micron to cut workforce by 15 percent, slash flash output
(Posted in Digital Media by Dawn Kawamoto)
October 9, 2008 1:34 PM PDT

Start-ups: How freaked out are you?

Early-stage tech companies, please chime in: are you losing sleep over the current economic crisis, or are you feeling confident? And how long will your cash last?
(Posted in Webware by Rafe Needleman)
October 9, 2008 8:36 AM PDT

The tech downturn: How long and how bad?

We interviewed more than 20 executives, venture capitalists, and bankers to see what they think. While there's little consensus, one thing's for sure: they're plenty worried.
• Angel investor Ron Conway to portfolio: Cut expenses now
• Wall Street gives Net titans price cut, sector caution
(Posted in Business Tech by Jim Kerstetter)
October 9, 2008 4:00 AM PDT

Amid gloom, IBM sees sunny forecast

Big Blue releases preliminary earnings, saying earnings per share and net income for the third quarter were up about 20 percent over the previous year.
• Does IBM signal strength for tech spending?
(Posted in Business Tech by Jennifer Guevin)
October 9, 2008 4:00 AM PDT

Tips for surviving the market meltdown

Making smart cuts is part of winning in downturns. But no one ever cost-cut there way to greatness. Now is the time to go on the attack. It just takes courage, cash, and conviction.
(Posted in Outside the Lines by Christopher Lochhead)
October 8, 2008 9:34 AM PDT

Yahoo shares fall into the $13 range

The Internet company also sets a new 52-week low as its battered stock falls to a level it has not seen since May 2003.
(Posted in Digital Media by Dawn Kawamoto)
October 8, 2008 8:12 AM PDT

No escape from the perfect financial storm

After this perfect storm, brewed out of years of habit and taken down by mortgages for the masses, consumers and businesses will be far more conservative in their spending habits.
• Video: Talking with Newt Gingrich on tech, bailout
(Posted in Outside the Lines by Dan Farber)
October 7, 2008 5:29 PM PDT

Analysts cut Google and SAP targets

Shares continued their downward trek as Wall Street weighed in Tuesday with earnings cuts.
• Search-ad revenues grow amid market malaise
(Posted in Business Tech by Dawn Kawamoto)
October 7, 2008 10:01 AM PDT

Tech stocks plummet with the rest
As the Dow drops below 10,000, CNET's Kara Tsuboi and Ina Fried
discuss which stocks have been hit particularly hard and why the
financial crisis has hit both enterprise and consumer companies.

Making sense of the tech meltdown on Wall Street

Why did typically stable SAP lead the way into the cellar? The normal rules of the high-tech industry's economics may not apply as the overall economy seems to unravel.
• Podcast: Catching our breath, post-tech selloff
(Posted in Business Tech by Jim Kerstetter)
October 6, 2008 4:00 PM PDT

More companies bracing investors for current quarter

Amid troubled economic climate, public companies like SAP and Netflix are retooling Wall Street's expectations before they even report results of their third quarter.
(Posted in Digital Media by Dawn Kawamoto)
October 6, 2008 5:34 PM PDT

Bailout or not, the tumble begins

The House of Representatives stuns economy watchers by failing to pass a bailout bill. Days later, a revised bailout bill passes the Senate, but the markets remain spooked and frantic.

Troubled times ahead for tech?

Politicians are turning cartwheels to connect the meltdown on Wall Street to Main Street. But the companies along Hwy. 101 are just as vulnerable to a crummy economy.
(Posted in Business Tech by Jim Kerstetter)
October 2, 2008 4:35 PM PDT

The makings of another tech mess?

A shaky overall economy inevitably spells trouble for the tech industry. Here's a breakdown of how it could play out.
(Posted in Business Tech by Jim Kerstetter)
October 2, 2008 4:34 PM PDT

Employment outlook gets murkier at tech companies

Amid a "hiring chill" in Redmond, CNET News checked in with other big tech giants on their personnel plans.
(Posted in Beyond Binary by Ina Fried)
• Microsoft denies companywide hiring freeze
• Daily Debrief video: A chill in the air for tech workers
October 3, 2008 2:34 PM PDT

Bailout bill loops in green tech, IRS snooping

Originally a three-page $700 billion bill, House-approved bailout package now includes surveillance provisions and tax credits for green tech, SunKist tuna, and wooden arrows.
• New phishing attempt targets bank customers
(Posted in Politics and Law by Declan McCullagh)
October 3, 2008 10:07 AM PDT

Tech entrepreneurs changing strategies, not products

Money is getting tight, but that doesn't mean start-ups should give up, say investors at the Startonomics conference in San Francisco.
(Posted in Webware by Rafe Needleman)
October 2, 2008 12:35 PM PDT

Tech M&A spending takes big hit in third quarter

Tech mergers and acquisitions fell by a third compared to a year ago. Decline fueled by credit tightening and havoc on Wall Street, says a new report by The 451 Group.
• Yahoo to cut its workforce?
(Posted in Business Tech by Dawn Kawamoto)
October 2, 2008 8:32 AM PDT

Senate passes bailout bill

The Senate passes a revised bill that adds tax cuts and other add-ons, in addition to the $700 billion financial rescue.
(Posted in Business Tech by Ina Fried)
October 1, 2008 7:20 PM PDT

Why the credit crunch is about more than Wall Street

A lack of credit affects businesses from tech giants to mom-and-pop stores to all manner of consumers.
(Posted in Business Tech by Ina Fried)
September 29, 2008 2:49 PM PDT

Tech stocks hammered as bailout fails in House

Stocks, including those of technology companies, took a beating after the House of Representatives fails to pass the government bailout of the financial sector.
• Apple shares drop 17.5 percent
(Posted in Business Tech by Ina Fried)
September 29, 2008 11:29 AM PDT

Web leaders on economy: Keep calm and carry on

At the Web 2.0 Expo in New York, just a stone's throw from the turmoil on Wall Street, it was hard not to notice the financial-industry meltdown.
(Posted in The Social by Caroline McCarthy)
September 19, 2008 12:00 PM PDT