Technology ETF Drops With Cisco
February 7th at 11:00am by Tom Lydon
Shares of Cisco Systems have been posting disappointing revenue growth, sending the technology-related exchange traded funds (ETFs) to their lowest levels this year. Tech stocks tumbled Thursday, and shares of Cisco (CSCO) were sold off after analyst downgrades, reports Cindy Perman for CNBC.
The company reported earnings that were in line with estimates, but CEO John Chambers said it was the most cautious he’s seen CEOs in the United States and Europe in many years.
Select Sector Technology SPDR (XLK) has lost 2.7% in the last week and has slid to a two-week low on the news. Cisco is 6.2% of the fund. The networking equipment and management company is also a major holding of the iShares Dow Jones US Technology (IYW; 7.5%) and the iShares S&P Global Technology (IXN, 5.5%).
