Now EMC Missed !!! IT Spending Down Globally, Symantec Next ...
EMC reported today and missed on revenue & profit, and guided lower. This on the heels of countless other tech giants. (good catch again Mayface1)
Symantec is all but guaranteed to miss and guide lower today (or play the range-widening game). Anything otherwise would be severely suspect and an invitation to an audit.
There will no doubt be desperate hypers and a few analyst re-iterations/revisions, but shares ultimately will head downward to the 15.50 to 16.00 range to establish a bottom. And I'm sure we'll see Cramer telling people to buy the shares tomorrow on weakness..
USE YOUR HEADS, this is not a stock to be entering yet, lower levels ahead and uncertainty in general - from macro conditions to the tech sector to IT spend to the election to fiscal policy, all before even discussing the disruption from the new CEO and lack of clarity into the new (same old) strategy yet to be unveiled.
The editorial hype is starting already, comical editorial piece (headlined to sound "official") on the news wire, and an analyst with some seriously flawed commentary being cited. Claiming Symantec will be in line. Statistically and historically speaking, the only thing Symantec will likely be in line with is the other dozen+ techs and large-cap peers who recently missed and guided lower.
I should also point out that, if by some fluke the company meets expectations at earnings, then assuming there is no funny-number going on, there will be a likely explanation that should be understood. That being, when a new CEO comes on board, all the subordinate managers become entirely insane with worry for their jobs, and pressure for each team/product to meet their numbers rolls down hill. So much that in fact anything can happen, by any means to meet numbers. So, for hypothetical example, in the case of Symantec, any year-end customer or IT budget-flush that would normally be realized in calendar Q4 may end up cannibalized via deal-making to get orders committed in the current quarter. Which might help this quarter but is only postponing the train wreck. And in the mean time investors get falsely lured in. So again, if by some fluke Symantec hits numbers then be very, very cautious of what that likely means, new investors should be careful not to get lured into the hyping games as eventually lower entry points will be available.