Google's sagging earnings report followed similarly tough news this week from and , signaling that the tech sector could be entering a difficult economic phase, according to analysts.

Also reporting : Microsoft.

"The tech sector is finally feeling the impact of the world-wide recession," said Dan Olds, an analyst with The Gabriel Consulting Group. "It's hit the PC vendors hard, and is now making its way up to the large diversified tech vendors like Intel and IBM. I think that we're going to see a few quarters of weakness moving forward, but there might be some light at the end of the tunnel next year, assuming that some confidence returns to the economy."

Google caught Wall Street by surprise when its third-quarter earnings report was released hours before expected.

The report showed a 20% drop in the company's profits, as total costs rose and advertising prices slid. The news brought on a sell-off of Google shares, dropping the company's stock price by 9% before trading was suspended to halt the stock's slide.