TECH STOCKS: Cisco Jumps, But Apple, Facebook Stumble

By Rex Crum, MarketWatch

SAN FRANCISCO (MarketWatch) -- Tech bellwether Cisco Systems Inc. flexed its muscles Thursday as investors got behind the networking giant after its latest quarterly report, but the company's gains failed to ignite a rally across the tech sector.

Cisco (CSCO) shares climbed 7%, to $24.40, after the company reported late Wednesday a fiscal third-quarter profit of $2.2 billion, or 42 cents a share, on revenue of $11.5 billion. Excluding one-time items, Cisco said it earned 51 cents a share. Analysts surveyed by FactSet had forecast Cisco to earn 48 cents a share on $11.36 billion in sales.

On a conference call to discuss Cisco's results, Chief Executive John Chambers said the company was focused on its outlook and the potential positive impact from new products.

Following Cisco's results, analyst Alex Kurtz, of Sterne Agee, bumped up his price target on Cisco's stock to $26 a share from $25. Kurtz said that Cisco's "continued execution in DC [data centers] could help investors buy in to management's longer-term strategy."

But even a sector leader like Cisco couldn't spur enthusiasm for the rest of the tech sector. Nearly every other major tech company's shares fell, including Apple Inc. (AAPL), Facebook Inc. (FB), Netflix Inc. (NFLX) and Microsoft Corp. (MSFT).

The Nasdaq Composite Index (RIXF) was down by 51 points at 4,049, and the Philadelphia Semiconductor Index (SOX) shed 1.5%.

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