Watch to See if Cisco Holds $17: Pros

On Wednesday the Fast Money traders were closely watching the aftermarket decline in Cisco, with shares slipping as much as 9% post earnings.

“The Street didn’t like the guidance,” says pro trader Guy Adami.

“Cisco talked about a cautious environment and a slowdown in spending,” adds BGC analyst Colin Gillis. “They’re talking about 2% revenue growth. But the bone chilling component is that enterprise spending could slow.”

On the call CEO John Chambers said enterprise customers were only looking to spend more in the second half if Europe doesn’t get worse and if government policy doesn’t impede sales.

“Those are two big ‘ifs’,” muses Adami.

Looking at the stock’s after market decline, Brian Kelly says trading Cisco is all about how the stock behaves around $17.”

“I think $17 will be support. If it holds $17 on Thursday, I’d buy as a trade – but it’s a trade only,” says Kelly.

As a value investor Karen Finerman thinks around $17 Cisco is more of an investment than a trade. “(At $17) Cisco will break 10 as a P/E multiple,” says Finerman. "The stocks is screaming cheap. I can’t say I’ll pull the trigger Thursday, but I’ll certainly take a look.”

Trader Guy Adami agrees that valuations are attractive. However, with the uptrend broken, he thinks Cisco is in no-man’s land. “I wouldn’t touch it.”

Looking at the results a little more closely, Cisco said it expects fiscal fourth-quarter earnings of between 44 and 46 cents a share and revenue growth of 2.5 percent; analysts currently expect earnings of 49 cents a share on revenue growth of 7 percent, according to Thomson Reuters.

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Trader disclosure: On May 9, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Karen Finerman is short AAPL; Karen Finerman is long BAC; Karen Finerman is long JPM; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long RIMM; Karen Finerman is long HPQ; Karen Finerman is long AVP; Karen Finerman is short SPY; Karen Finerman is short IWM; Karen Finerman is short MDX; Dan Nathan is long JAN 450 puts AAPL; Dan Nathan is long BAC MAY 7 PUTS; Dan Nathan is long MS MAY 16/15/12 PUT FLY; Dan Nathan is long IBM JULY 200/185 PUT SPREADS; Dan Nathan is long RIM JAN 20/25 CALL SPREAD; Dan Nathan Is long MLD Jun 92.5 Put Spread; Dan Nathan is long SPY Mar 135/130 Put Spread; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Brian Kelly is long WFC; Brian Kelly is long QQQ; Brian Kelly is long T; Brian Kelly is long VZ; Brian Kelly is long ADM; Brian Kelly is long USG; Brian Kelly is long KRE; Brian Kelly is short KRONE; Brian Kelly is short FTSE 100 Futures

For Ed Deike
Ed Deike is long HJJ
Ed Deike is long HJG
Ed Deike is long C-S
Ed Deike is long C-W
Ed Deike is long BAC-U
Ed Deike is long MER-K

For Aaron Kessler
Raymond James & Associates makes a market in shares of priceline.com Incorporated.

For Dennis Gartman
Dennis Gartman is long GOLD
Dennis Gartman is short EUR
Dennis Gartman is short Yen
Dennis Gartman is short US10Y

For Colin Gillis:
BGC Financial LP and/or its affiliates, does not expect to receive, or intend to seek, compensation for investment banking services within the next three months from all of the companies referenced within this report: CSCO
BGC Financial LP and/or its affiliates, has not acted as lead or co-manager in a public offering of equity and/or debt securities for Cisco within the last 12 months. BGC Financial LP and/or its affiliates has not received compensation for investment banking services in the last 12 months from CSCO

CNBC.com with wires.