Networking

05:00 PM
Connect Directly
RSS
E-Mail
50%
50%

Networking's Nervous Boomlet

While watching stock prices is not a main concern at this locale, networking types had to be a tad concerned when the price of Foundry Networks shares fell off a

While watching stock prices is not a main concern at this locale, networking types had to be a tad concerned when the price of Foundry Networks shares fell off a cliff yesterday, losing more than $8 per share, roughly 25 percent of the stock's worth. According to various reports, the investor departure most likely hinged on some conservative statements made during the company's earnings conference call Wednesday, where Foundry actually reported decent numbers.

Usually, we're more concerned here with the price of the actual networking equipment, software or service, and whether or not it provides good value. But the markets can't be ignored, since stock prices have huge effects on things like hiring, marketing and R&D budgets, and customer perception, all of which influence whether or not a product can succeed. Still, guessing which way stocks are going to go is a fool's game, especially in these once-again uncertain times.

Could it be that Foundry got whacked because it didn't live up to the over-the-top results reported recently by the likes of Juniper, Lucent and even Nortel, which yesterday waxed optimistic about the future? Or is Foundry correct in saying the recovery might not be as robust as everyone thinks? No doubt, we'll find out more about the real strength of this market next Tuesday, when Cisco checks in with its latest report.

Comment  | 
Print  | 
More Insights
Cartoon
Slideshows
Audio Interviews
Archived Audio Interviews
Jeremy Schulman, founder of Schprockits, a network automation startup operating in stealth mode, joins us to explore whether networking professionals all need to learn programming in order to remain employed.
White Papers
Register for Network Computing Newsletters
Current Issue
2014 Private Cloud Survey
2014 Private Cloud Survey
Respondents are on a roll: 53% brought their private clouds from concept to production in less than one year, and 60% ­extend their clouds across multiple datacenters. But expertise is scarce, with 51% saying acquiring skilled employees is a roadblock.
Video
Twitter Feed