Grazed from InsiderMonkey. Author: Marshall Hargrave.
We believe that a continued rapid consumption of network capacity, driven by a rising use of tablets and smartphones, will propel companies operating in the cloud computing and wireless network optimization space. In the interim, these companies are seeing a slowdown due to uncertainty in the economy, which has led to IT budget cuts. It appears that several funds are making moves into the cloud computing space in preparation for a future shift in enterprise technology that includes data center consolidation and virtualization. The five companies below are some of the top ways to play cloud computing—and include shareholders such as Jim Simons, D.E. Shaw, Steven Cohen and Ken Griffin.
The traditional data networking company, Cisco Systems, Inc. (NASDAQ:CSCO), is in competition with server and computing players for market share in the cloud computing and wireless area network optimization—see our other thoughts on Cisco. Cisco, being a $100 billion market cap company, has attracted some big name interest, including Ken Fisher and D.E. Shaw. Also, as of 2Q, Cisco was an Edinburgh Partners’ Top Pick and saw five funds with over 5% of their 13F portfolio invested in Cisco—see all funds owning Cisco. There have been a round of insider sales of late around $19, which is where the company currently trades. With Cisco’s initiative to focus on data storage partnerships versus acquisitions, the company is expected to grow EPS by only 7.7% next year...
F5 Networks, Inc. (NASDAQ:FFIV), even with an uncertain U.S. and European outlook, is expected to grow 2012 revenues by 20%. The stock is down almost 24% over the last four months, but 2Q guidance showed a positive outlook. Analysts have mixed feelings on F5; the company recently saw a downgrade at Barclays Capital, a reaffirmation at Piper Jaffray and MKM Partners, and an upgrade at Deutsche Bank. Also worth noting, like Cisco, there have been a number of recent insider sales at F5. Jim Simons was the top fund owner as of 2Q, with almost 900,000 shares. Steven Cohen and D.E. Shaw were also prominent shareholders...
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