| 19:36 EDT |  | CSCO, OPLK, GME, FB, MRVL, QCOM, ZNGA, GRPN, LSI, PCLN, AVGO | Sluggish growth extends far beyond the PC giants, Barron's reports
Chip makers in the smartphone business have also struggled. Marvell Technology (MRVL) reported a 9% drop in revenue this past week, and is expected to see a 3% drop for its FY, after a 6% drop last year. Wireless chip vendor Avago Technologies (AVGO) had 0.5% revenue growth last quarter. Even the Internet darlings didn't deliver enough growth to satisfy investors. Groupon (GRPN), Facebook (FB), and Priceline.com (PCLN) all delivered double-digit year-over-year growth, only to see their stocks punished because such growth didn't live up to the loftiest expectations implied by their rich stock valuations. Internet games purveyor Zynga (ZNGA) recently reported 19% quarterly sales growth, only to slash its year revenue outlook. Some industries are just plain terrible -- such as, videogame retailer GameStop (GME), which had an 11% drop in revenue in the latest quarter, and a 27% drop in adjusted profit per share. Still, there have been some standout performers. Some of them are companies gaining market share -- they include chip maker LSI (LSI) and chip maker Qualcomm (QCOM) which saw 27.7% growth in its FQ3. Other pockets of strength include companies on the comeback trail, such as fiber-optics-component vendor Oplink Communications (OPLK). Bottom-line: Technology Trader columnist Tiernan Ray says: Cisco's (CSCO) not growing like smartphone champs such as Qualcomm, but it's not on the ropes the way Juniper is. And it's not priced for perfection like F5 or Facebook. Reference Link |
