Does F5 Blowup Tell Us Much?

 | Apr 05, 2013 | 6:46 AM EDT  | Comments
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Stock quotes in this article:

ffiv

,

csco

,

FB

F5 Networks (FFIV), on-ramp to the Internet, blows up in a spectacular fashion. The government business, a mainstay, is terrible. The telco business is awful.

I have to ask, is this really revelatory?

This stock has been headed down for months because it is NOT a cloud play. It is a play on your own internal hardware. And the world is going away from it.

How do I know this? Because Facebook (FB) used to be a big client of FFIV and now Facebook is going virtual. You don't need F5's piping if you go virtual.

Now, I know on the call F5 took a real shot at Cisco (CSCO), and Stephanie Link and I will suss that out in an Action Alerts PLUS bulletin because Cisco is a name we are building. You NEVER want to hear anyone lose business to anyone and we know that F5 took some away from Cisco. The company was mentioned by name on the call.

But right now I am saying this is F5-specific. I doubt a soul believes that.

But that's the only way I can read it.

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