Back in November, after Cisco Systems ($CSCO) reported an ugly quarter, I warned that weakness in the name was not $CSCO specific.
I took flack for that message from those who were bullish tech in general and companies like $JNPR specifically who appeared to be executing better.
Granted, $JNPR went on to make higher highs into March and it did appear that perhaps the poor performance was $CSCO specific. This was a head fake in my opinion compounded by the fact that $CSCO had been sprawling themselves too thin and stumbling in non core areas including consumer products.
Things are much more obvious now.
The $JNPR numbers and guidance from last night are telling you something about the networking equipment space as a whole as $CSCO’s numbers did in November.
Tempered IT spending within an uncertain economic environment and increased competition continues to weigh on these names.