MSN and AOL are the ultimate aggregators. YHOO appears to be the odd man out. In telecommunications myriad issues swirl around these equities. Too much fiber capacity, and the movement of more data and video over the Internet cloud is rupturing the business models of legacy players like ATT and Worldcom. In the area of operating systems, the increasing support of players like IBM for Linux, can spell trouble for MSFT, which also must battle free offerings of StarOffice, a free office suite with all the functionality of Office Professional.
Technology needs growth and and it needs market share to command premium multiples.
At this point we still have premium multiples, but we also have negative sequential growth, and declining market share. While technology clearly critical to the US and world economy, this is not like shooting fish in a barrel. It is a most dangerous game. Being overweighted in tech may be ill-advised. There should be overweightings in early cyclicals and financials.