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No.1 - Blank Check for Tech?

Tuesday, 8 May 2007 | 8:10 PM ET

Cisco (CSCO), the world’s largest maker of computer-networking equipment, releases earnings after the bell Tuesday. Jim Goldman, CNBC’s Silicon Valley Bureau Chief, joins the guys to discuss what the numbers mean for Cisco – and for the tech sector as a whole.

Cisco’s earnings might have looked disappointing to many investors, but Jim doesn’t think they were a disappointment at all. They actually beat estimates. And there was such a huge run-up in the stock these last few days, he says, that this is just a case of ‘good but not good enough.’

The Top Three #1
Tech spending with CNBC's Jim Goldman



Tim Strazzini still likes Cisco and thinks the stock is selling off because the guidance wasn’t fantastic. Traders were looking for the tech bellwether to really sound the horn and show that it was turning the corner. Anything less would be an automatic disappointment.

Jim expects big cap tech companies will do well for the rest of 2007. As for Cisco, the company beat estimates on the top line but it wasn’t able to translate more revenue into more profits. That’s a Cisco-exclusive issue, he says, and it won’t hurt big capital expenditure spending coming back into U.S. tech companies.

Cisco simply didn’t have a great number, Jeff Macke says. He doesn’t think the company was overbought and when capital expenditure takes off, Cisco will be a stock to own.

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Trader disclosure: On May 8, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (JWN); Bolling Owns (DIS), Gold, Silver; Bolling Is Short Nasdaq Futures, Bolling Closed Out His Tesoro Put Trade; CNBC Is A Service Of NBC Universal And Dow Jones

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