• Reuters, Friday, January 25, 2008 10:46 AM

Tech stocks have been slammed during the recent stock market slowdown, knocking down most of the "momentum money" powering the sector's big four: Google, Apple, Amazon and Research in Motion. The sell-off calls into question whether investors have been caught up in another tide of irrational exuberance. Analysts say the stock valuations of the aforementioned have dropped to "more appetizing levels."

So when's the time to buy? Sanford C. Bernstein analyst Jeffrey Lindsay says the time to buy could be at the beginning of the second quarter. "The volatility is going down right now, and once the current uncertainty plays out, it's opening up a fabulous buying opportunity," he says.

Or maybe sooner: Microsoft's earnings brought some much-needed good news to the tech sector, as shares were up 9 percent in after hours trading yesterday. Meanwhile, last year's sector drivers are down considerably this year: Google, RIM and Amazon have shed 15 percent of value, while Apple has lost 30 percent. By comparison, the S&P 500 index is down 8 percent. As Keith Wirtz of Fifth Third Asset Management, says, tech stocks have "gotten cheap again and I still think the core fundamentals look very attractive."

Read the whole story at Reuters »