Equity markets all over the world have suffered declines today, ostensibly because of Cisco Systems disappointing results and tepid forecast. The markets are inferring that the "airpockets" cited 9 times, by my count, by John Chambers on their conference call speak to some macro issues. Consequently many equities, particularly laterals, are selling off right now.
The market would do well to pause and reflect. I have no opinion of Cisco Systems, I am not familiar with its business or end markets. However, I do know that the company indicated cable set top boxes and government spending as particular areas of weakness. Additionally, I know that Cisco's revenues are up 17% year over year.
Considering that other bellwether names have recently reported and forecast increased demand, that Cisco has now missed twice in a row, and that their results in many respects were quite respectable, investors would do well to take a few breaths and not panic over this event. Cisco - the company - is still doing quite well and its problems likely have something to do with positioning and market share. Not macroeconomics or "airpockets."