January 2, 2005

Technology sector overview: The outlook for 2005

Author: Melanie Hollands

Technology stock valuations are high. Particularly in light of the relatively modest revenue growth rates at many technology companies. Valuations look especially high in the smaller cap tech stocks despite that, during 2004, as a group they fell around 3 percent after surging around 65 percent in 2003 (helping drive the Russell 2000 Index up 45 percent in 2003).
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