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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