Sunday, January 25, 2015

Seeking Alpha: F5 Shares Spin Out On Weakness In Product Sales

I liked F5 (NASDAQ:FFIV) back in September, but had some concerns about the valuation and the company's history of volatility around earnings. While the shares of this technology company did rise in the months after that piece (topping out at an 8% gain), the volatility I mentioned as a big concern has returned with a vengeance after the company's fiscal first quarter report.

There have been longstanding concerns about F5's ability to offset slowing growth in the legacy ADC market with a host of product enhancements (especially security) and the weakness in this quarter and guidance has given them new life. I'm still a long-term bull on F5, though, and I think this might be one of those "buy the dip" opportunities for adventurous investors who can handle the risk that additional weakness in product revenue pushes the shares down even further as the year develops.

Read more here:
F5 Shares Spin Out On Weakness In Product Sales

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