This Hot Tech Sector Will Burn Investors

Senior technology analyst Eric Bleeker follows up with Chief technology officer Eric Bleeker on previous predictions that home entertainment stocks would fall flat. Since Eric calling out the group, Rovi Corporation, Entropic Communications, and MIPS technologies have greatly underperformed the Nasdaq. These stocks looked overheated and reminiscent of how tablet companies soared in early 2011, and now they have fallen.

The problem isn’t that home entertainment does not have promise, it’s that a lot of the growth could be left on platforms like Apple TV or the next Xbox. Expect the gains to be accrued by a small group of companies like Apple and Microsoft rather than shared by all home entertainment companies. sfr

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