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%).
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.