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Wall Street Beat: Tech stocks hit 13-year high

Marc Ferranti | Dec. 9, 2013
The Nasdaq computer index Friday hit its highest point since November 2000, in the wake of the dot-com bust, despite mixed reports this week from the hardware and components sector.

More and more consumer are using mobile phones for online commerce, noted Adobe in a report on so-called Cyber Monday, the Monday after the U.S. Thanksgiving holiday, which this year fell on Dec. 2. Online sales for the day increased by 16 percent year over year to $2.29 billion, Adobe said. A record 18.3 percent of sales came from mobile devices, an increase of 80 percent, the company reported.

The strong stock market has helped boost initial public offerings, especially those for tech companies. The technology sector recorded 13 IPOs in the third quarter compared to 11 in the year-earlier period, according to the Global Technology IPO Review from PwC, issued Friday.

Total proceeds from tech IPOs were $1.3 billion, an 18 percent jump year over year. The figures don't include Twitter's IPO in November. Thanks in large part to the strong market for tech shares, tech IPOs should continue strong for the current quarter.

The software sector, in particular, is expected to generate more of a revenue boost for tech this year than hardware, and that also plays into the IPO market.

"The strong IPO momentum coming out of the third quarter is primarily powered by the software sector, which continues to reign supreme both in terms of technology venture funding and technology IPOs," said Bryan McLaughlin, a partner with PwC, in the IPO report. "In a volatile market, IPO investors welcome enterprises that deliver growth and predictability, and software, particularly SaaS models, have the ability to deliver on that value proposition."

 

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