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HEXUS.sharewatch: Cisco plunges on weak outlook

by Scott Bicheno on 15 November 2010, 12:53

Tags: Intel (NASDAQ:INTC), Cisco (NASDAQ:CSCO), NVIDIA (NASDAQ:NVDA)

Quick Link: HEXUS.net/qa23t

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Networking giant Cisco announced its quarterlies on Wednesday last week. While revenues and earnings for the quarter were a bit above expectations, its outlook for the rest of the 2011 financial year fell well short of what analysts had hoped.

The reasons given were weakening public sector spend, a weakening set-top box market and general weakness in Europe. As a result, not only did Cisco's shares plunge by almost 20 percent when trading commenced on Thursday, but markets on the whole got gloomy.

Only a couple of shares escaped the general sell-off. NVIDIA announced its quarterlies at the end of the week and CEO Jen-Hsun Huang was quite bullish. Investors seems to be convinced by his promises that NVIDIA's mobile chip - Tegra - is finally set to deliver and its shares rose. The other minor gainer was Intel, which announced it was going to increase the dividend it pays on its shares.

The other thing that is likely to be spooking investors is the increasing likelihood that Ireland will have to call upon the EU bail-out fund, and the financial contagion that may well cause. The worry is that weaker Euro countries, such as Greece, Ireland and Portugal, may well drag down the big players, like Germany, with their inability to pay their debts.

 

Company Listing Share price 25/10/10 Share price 1/11/10 Share price 8/11/10 Share price 15/11/10 7-day change Market cap (bn)
AMD AMD 6.89 7.34 8.04 7.63 -5.1% 5.15
Apple AAPL 307.47 300.98 317.13 308.03 -2.9% 282.56
ARM ARMH 18.42 17.68 17.26 17.11 -0.9% 7.53
Avnet AVT 28.80 29.78 31.44 30.87 -1.8% 4.69
Cisco CSCO 23.48 22.86 24.24 20.15 -16.9% 112.54
Dell DELL 14.59 14.40 14.46 13.42 -7.2% 26.10
Google GOOG 612.53 613.70 625.08 603.29 -3.5% 192.92
HP HPQ 42.87 42.04 43.72 42.21 -3.5% 95.72
IBM IBM 139.67 143.60 146.92 143.74 -2.2% 178.58
Ingram Micro IM 17.79 17.66 18.26 17.73 -2.9% 2.78
Intel INTC 19.83 20.05 21.24 21.53 1.4% 120.09
Microsoft MSFT 25.38 26.67 26.85 26.27 -2.2% 224.75
Nokia NOK 11.06 10.70 10.77 10.28 -4.5% 38.50
Nvidia NVDA 11.80 12.02 12.60 13.26 5.2% 7.61
Oracle ORCL 28.99 29.38 29.25 28.32 -3.2% 142.37
Qualcomm QCOM 44.18 45.16 48.33 47.47 -1.8% 76.20
Tech Data TECD 42.88 42.96 46.20 43.57 -5.7% 2.03
Dow .DJI 11132.56 11118.49 11444.08 11192.58 -2.2% N/A
FTSE 100 .FTSE 5741.37 5675.16 5875.35 5796.87 -1.3% N/A
NASDAQ .IXIC 2479.39 2507.41 2578.98 2518.21 -2.4% N/A


HEXUS Forums :: 1 Comment

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They'll bounce back, Cisco has a knack for weathering the bad times quite well.