Positive Sign: companies are ramping up their IT spending
I just got off the phone with someone who works in sales for one of the world's top e-commerce companies (that shall remain nameless). This individual is very "plugged-in" in terms of how sales are going and what the order pipeline is like for business investment in IT in general and e-commerce specfically.
Towards the end of last year and the beginning of this year business investment in this sector completely fell off of a cliff. Businesses were uncertain about where the economy is headed and the completely cut off any expenditures that weren't absolutely necessary. Flash forward to today and this individual tells me that his company's order pipeline is as full as he has ever seen it and he's been in the industry for nearly a decade.
This is not a person who is prone to hyperbole and it's someone whose opinion I trust very much, so I take this as an extremely positive sign that business investment, at least in terms of technology and e-commerce, will improve over the course of the year. I would not be surprised in the least to see some positive earnings surprises in the tech sector in Q3 and Q4.
Food for thought.