It seems as if the stock market is punishing all technology companies regardless of performance. That underlines a set of opportunities for long-term investors. There were many eyes on this cycle of technology earnings as the markets waited to see if a hawkish Federal Reserve and mixed economic data were pointing to a recession. But earnings season has separated the strong from the weak.
A bifurcation in the technology sector has been evident for some time. While most growth and tech names are lumped together, not all technology companies are created equal, of course. This quarter, a light shined on those companies that are positioned to perform well in this highly uncertain and tepid macroenvironment. Tech companies that delivered the best results have at least one of these attributes:
They provide products or services with minimal exposure to consumers.
They provide ultra-premium products or components serving the most affluent customers.
Enterprise technology is attractive This quarter’s results were largely better for companies that serve enterprise and business-to-business customers. Cloud revenue at …