M&A galore, stronger-than-market organic sales growth is all over the place in technology. Just look at Facebook (FB) , NetSuite (N) , Linear Technology (LLTC) , Apple (AAPL) , F5 Networks (FFIV) , Cisco Systems (CSCO) , Dycom (DY) -- the list goes on and on, up and down the capitalization range.
Those net sellers of health care and biotech, in the face of a dicey election, are rotating solidly into technology. This can last for a while if the tech leaders continue delivering.
Even Groupon (GRPN) , is up as high as 30% this morning as the company retrenches and markets aggressively to local market consumers looking for that sweet deal on a massage, trip or dinner. Hyper-local guerilla marketing is Groupon's game. The money-saving Millennials and other cheapskates are flocking to the Groupon app in droves. The company raised cash flow guidance by 40%. Price targets are going higher on this one. Remember, Groupon came public in late 2011 at $20 and soared into the $30s.
If it continues delivering on organic growth, with a cash-rich balance sheet and no debt, it will be acquired. Why not Priceline (PCLN) ? It has a vast horizontal marketing reach among key areas of Internet deal spending in dining, travel, health and wellness, and local events. What an interesting asset, and it is not tied to oil.
What about Pandora (P) ? A captive audience in an increasingly competitive area, but what an asset. Good, curated playlists for the lazy, with solid underlying social media and sharing capability. Shares are down almost 25% over the last 12 months.
One thing is for sure: There is some value in technology-land as folks look forward. Demographics will drive continued infiltration of everything. Capital is being allocated and growth is being realized from solid organic and seemingly appropriate M&A spending.
It could dry up, sure. But what an interesting period across all areas of technology.