International Business Machines Corp. (IBM), Microsoft Corporation (MSFT): Which Tech Stock to Buy Post Earnings?

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A weak quarter from International Business Machines Corp. (NYSE:IBM) should give investors some pause. Weaker demand could persist in 2013, which limits upside. IBM gave up its gains for the year (shown in the above chart), but may appeal to investors hoping for shares to rebound.

The strong results from NXP may have stopped the decline, since shares peaked in February at $32.99. Seasonal weakness in technology may limit gains. The matter is similar for SanDisk Corporation (NASDAQ:SNDK), whose shares are priced for perfection.

The most compelling investment may be Microsoft Corporation (NASDAQ:MSFT), though investors might want to wait for shares to pull back. The company demonstrated that its enterprise and office software sales are limiting the impact of declining PC sales. Investors could hold shares and be paid a dividend of $0.92 per share, or a yield of 3.01%.

The article Which Tech Stock to Buy Post Earnings? originally appeared on Fool.com.

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