Despite the fact that Cisco Systems posted great results for its January quarter, and provided April quarter guidance that significantly exceeded analyst expectations, the news failed to rejuvenate the U.S. NASDAQ at the back end of last week . CEO John Chambers, traditionally regarded as having a very conservative view on his markets, sounded very positive about Cisco's prospects going into 2010. He said the company was seeing a broad-based recovery across all geographies and product sectors and that it was seeing a continued improvement in business spending.. Chambers said. “Our outstanding Q2 results exceeded our expectations and we believe they provide a clear indication that we are entering the second phase of the economic recovery. During the quarter we saw dramatic across the board acceleration and sequential improvement in our business in almost all areas,”. So if Chambers is telling the markets that things are improving for Cisco, then maybe its time to take note given the company's position in so many core areas of IT spending.
Though risk aversion is increasing, the outlook for the global economy seems to be improving, particularly for the technology sector. Signficant weakness in the Nasdaq, should be seen as buying opportunity for the best in breed stocks including Microsoft, Intel and Cisco.
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