That's what shares of Juniper Networks (JNPR) and its tech brethren did Wednesday after rival networking-equipment maker Cisco Systems (CSCO) came in with a profit shortfall.
Juniper, which makes routers that manage traffic along telecommunications networks, closed down nearly 8%, or $7.81, to $94.38.
It wasn't alone in the collateral damage. Optical-networking company Sycamore Networks (SCMR) slid more than 12%, or $3.31, to a new 52-week low of $23.56, helping take the tech-heavy Nasdaq down 56 points to 2607. The Dow ended 10 points lower at 10946.
After the markets closed on Tuesday, Cisco reported fiscal second-quarter profits that fell short of Wall Street forecasts. It also lowered growth expectations for the next six months, citing slowing spending by telecommunications companies.
Cisco skidded more than 13%, or $4.69, in extremely heavy volume to a new 52-week low of $31.06. Volume was nearly the highest ever for a stock in a day, some 280 million shares, trailing only Intel's (INTC) volume of Sept. 22.
Cisco has been the poster child of the rapid growth that fueled the fast ascension of Nasdaq stocks. The tech leaders that pushed the index to its heights are now being taken down, as are the second- and third-tier players.
For instance, on Wednesday JDS Uniphase (JDSU), Yahoo! (YHOO) and Sun Microsystems (SUNW) all dropped sharply. Only software giant Microsoft (MSFT) and IBM (IBM) of the tech behemoths bucked the trend.
Cisco dropped after it missed earnings expectations for the first time in more than six years, falling one cent under EPS targets on sales that rose 55% to $6.75 billion.
The San Jose, Calif.-based company said its profit before one-time items rose 48% to $1.33 billion, or 18 cents a share, for the quarter ended Jan. 27 from $897 million, or 12 cents a share, in the year-earlier period.
Analysts had on average expected Cisco to report pro-forma earnings of 19 cents a share, according to First Call/Thomson Financial.
Lehman Brothers analyst Tim Luke cut his rating on the company to Buy from Strong Buy, citing weaker spending by Cisco customers, while Salomon Smith Barney trimmed its 12-month price target to $65 from $80 but encouraged investors to buy the stock at current levels.
"We think this puts Cisco within a week of hitting its trough valuation in this cycle and, accordingly, we are strongly recommending investors buy Cisco on the current weakness," the Salomon report said.
While many analysts lowered growth targets for the company, in line with management's guidance, some maintained positive views on Cisco's outlook.
"Despite this disappointing performance, Cisco is still growing faster than most of its peers, and remains an attractive long-term investment, in our view," Merrill Lynch analyst Michael Ching wrote in a report.
Wie zu erkennen ist, stehe ich nicht alleine mit meiner Meinung.
Es ist Zeit Cisco verstaerkt nachzukaufen oder fuer den einen oder
anderen Investor "erstmalig zu kaufen" (die gluecklichen) .
Happy trading
Stox
Juniper, which makes routers that manage traffic along telecommunications networks, closed down nearly 8%, or $7.81, to $94.38.
It wasn't alone in the collateral damage. Optical-networking company Sycamore Networks (SCMR) slid more than 12%, or $3.31, to a new 52-week low of $23.56, helping take the tech-heavy Nasdaq down 56 points to 2607. The Dow ended 10 points lower at 10946.
After the markets closed on Tuesday, Cisco reported fiscal second-quarter profits that fell short of Wall Street forecasts. It also lowered growth expectations for the next six months, citing slowing spending by telecommunications companies.
Cisco skidded more than 13%, or $4.69, in extremely heavy volume to a new 52-week low of $31.06. Volume was nearly the highest ever for a stock in a day, some 280 million shares, trailing only Intel's (INTC) volume of Sept. 22.
Cisco has been the poster child of the rapid growth that fueled the fast ascension of Nasdaq stocks. The tech leaders that pushed the index to its heights are now being taken down, as are the second- and third-tier players.
For instance, on Wednesday JDS Uniphase (JDSU), Yahoo! (YHOO) and Sun Microsystems (SUNW) all dropped sharply. Only software giant Microsoft (MSFT) and IBM (IBM) of the tech behemoths bucked the trend.
Cisco dropped after it missed earnings expectations for the first time in more than six years, falling one cent under EPS targets on sales that rose 55% to $6.75 billion.
The San Jose, Calif.-based company said its profit before one-time items rose 48% to $1.33 billion, or 18 cents a share, for the quarter ended Jan. 27 from $897 million, or 12 cents a share, in the year-earlier period.
Analysts had on average expected Cisco to report pro-forma earnings of 19 cents a share, according to First Call/Thomson Financial.
Lehman Brothers analyst Tim Luke cut his rating on the company to Buy from Strong Buy, citing weaker spending by Cisco customers, while Salomon Smith Barney trimmed its 12-month price target to $65 from $80 but encouraged investors to buy the stock at current levels.
"We think this puts Cisco within a week of hitting its trough valuation in this cycle and, accordingly, we are strongly recommending investors buy Cisco on the current weakness," the Salomon report said.
While many analysts lowered growth targets for the company, in line with management's guidance, some maintained positive views on Cisco's outlook.
"Despite this disappointing performance, Cisco is still growing faster than most of its peers, and remains an attractive long-term investment, in our view," Merrill Lynch analyst Michael Ching wrote in a report.
Wie zu erkennen ist, stehe ich nicht alleine mit meiner Meinung.
Es ist Zeit Cisco verstaerkt nachzukaufen oder fuer den einen oder
anderen Investor "erstmalig zu kaufen" (die gluecklichen) .
Happy trading
Stox
