CIENA's recent earnings were a familiar storyline for telecom equipment investors: lots of talk of equipment wins leading into disappointing earnings. That's the same storyline we've seen recently with companies like Alcatel-Lucent and Acme Packet, with stocks charts trending down punctuated by huge drops around earnings.
As CIENA tells it, it's getting plenty of wins but telecoms aren't rolling those wins out. In the following video, Senior Technology Analyst Eric Bleeker notes that at least CIENA is (barely) staying cash flow-positive unlike Alcatel. Yet broader challenges to the telecom equipment industry remain. It's not only steep price competition in existing products, but also telecoms not rolling out new deployments that companies like CIENA are counting on for growth. Eric says the best play for investors is keeping their investing dollars in other sectors. Watch the video to see his full thoughts.
The amount of data we store every year is growing by a mind-boggling 60% annually! Telecom equipment stocks might not be seeing gains as data explodes, but plenty of other companies are. To makes sense of this trend and pick out a winner, The Motley Fool has compiled a new report called "The Only Stock You Need to Profit From the NEW Technology Revolution." The report highlights a company that has gained 300% since first recommended by Fool analysts but still has plenty of room left to run. Thousands have requested access to this special free report, and now you can access it today at no cost. To get instant access to the names of this company transforming the IT industry, click here -- it's free.