Technology exchange traded funds were lower Wednesday as Juniper Networks (NYSE: JNPR) shares fell 20% after the network infrastructure provider reported soft quarterly earnings and offered a disappointing outlook.
“We continue to see headwinds in switching, routing and security,” said analysts at Auriga in a note.
“While management pointed to a number of macro-economic and other factors impacting near-term results and maintained an optimistic long-term view, we continue to remain on the sidelines as we see looming switching commoditization and intensifying competition in routing/security which offsets positive secular trends in service provider segment and new product introductions,” they added.
“Juniper faces several head winds in the second half of 2011, notably below-normal second-half service provider spending, a more challenging macro backdrop, and continued Japan weakness,” BMO Capital Markets said.