Silke
15.03.2001, 20:03
Siebel calls global slowdown 'likely'
By Barbara C. Costanza, CBS.MarketWatch.com
Last Update: 1:41 PM ET Mar 15, 2001
LOS ANGELES (CBS.MW) - U.S. stocks have been in sharp decline, but that may only be the beginning, says Tom Siebel, the founder of the software firm that bears his name.
"It's pretty ugly and it's going to get worse," Siebel said Thursday in his keynote address at the 8th Annual Internet World trade show in Los Angeles. See related story.
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In recent days, many pundits have started to predict at least six more tough quarters ahead.
But Siebel was having none of it. "Help me out here. How do you have a U.S. recession for six quarters, without having a global recession?" said Siebel, who is chairman and CEO of Siebel Systems (SEBL: news, msgs, alerts) .
"It's highly likely we'll have a global recession," he added.
Selective investing
Siebel said that he believes that an estimated 70 percent of the companies that operate in the customer relations management software business will be out of business within the year.
That means investors will be highly selective, as they should be, Siebel said. "Capital markets won't support you unless they see profits, revenue, a business plan," he said.
Siebel that at the point when stocks in the tech sector reaches rock bottom, buying opportunities will abound in "great companies like Sun Microsystems and Cisco."
Here to stay
Despite all the moodiness among the markets, investors and companies, Siebel still regards the Internet as a "critical" phenomenon that also the largest investment opportunity most people will see in their lifetime.
On a positive note, Siebel Systems remains focused and is still hiring, and retaining its best people, he said. Siebel even made a personal overture to potential employees, saying, "If you want to work for a great company, send your resume to me at tsiebel@siebel.com. We need all the help we can get."
Barbara C. Costanza is earnings editor of CBS.MarketWatch.com, based in Los Angeles.
Latest Industry
By Barbara C. Costanza, CBS.MarketWatch.com
Last Update: 1:41 PM ET Mar 15, 2001
LOS ANGELES (CBS.MW) - U.S. stocks have been in sharp decline, but that may only be the beginning, says Tom Siebel, the founder of the software firm that bears his name.
"It's pretty ugly and it's going to get worse," Siebel said Thursday in his keynote address at the 8th Annual Internet World trade show in Los Angeles. See related story.
FRONT PAGE NEWS
U.S. stocks get a nifty bounce
Jobs, price data give Fed room to move
No place to hide as market woes spread
What to do when the sky falls
In recent days, many pundits have started to predict at least six more tough quarters ahead.
But Siebel was having none of it. "Help me out here. How do you have a U.S. recession for six quarters, without having a global recession?" said Siebel, who is chairman and CEO of Siebel Systems (SEBL: news, msgs, alerts) .
"It's highly likely we'll have a global recession," he added.
Selective investing
Siebel said that he believes that an estimated 70 percent of the companies that operate in the customer relations management software business will be out of business within the year.
That means investors will be highly selective, as they should be, Siebel said. "Capital markets won't support you unless they see profits, revenue, a business plan," he said.
Siebel that at the point when stocks in the tech sector reaches rock bottom, buying opportunities will abound in "great companies like Sun Microsystems and Cisco."
Here to stay
Despite all the moodiness among the markets, investors and companies, Siebel still regards the Internet as a "critical" phenomenon that also the largest investment opportunity most people will see in their lifetime.
On a positive note, Siebel Systems remains focused and is still hiring, and retaining its best people, he said. Siebel even made a personal overture to potential employees, saying, "If you want to work for a great company, send your resume to me at tsiebel@siebel.com. We need all the help we can get."
Barbara C. Costanza is earnings editor of CBS.MarketWatch.com, based in Los Angeles.
Latest Industry