Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of videoconference specialist Polycom (NAS: PLCM) have popped today by as much as 13% on the heels of an analyst upgrade from equal weight to overweight.
So what: Barclays Capital bumped Polycom and ShoreTel (NAS: SHOR) to overweight while downgrading Riverbed Technology (NAS: RVBD) from overweight to equal weight. Barclays analyst Jeff Kvaal added, "We conclude healthy videoconferencing and unified communications trends should allow Polycom and Shortel to lead their networking peers. Riverbed's underlying drivers are intact, but demand may be slower to recover in a downturn, particularly in Europe."
Now what: He continued, "Our checks are bullish on Polycom and indicate an underlying shift in videoconferencing usage -- it is no longer just about cost savings, but revenue enhancing opportunities." Networking stocks have been taking a beating lately largely on macro spending fears, but Polycom's revenue last quarter jumped 24% year over year. If the global economy doesn't fall back into another recession, then Polycom's road to higher ground will have fewer obstacles.
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At the time thisarticle was published Fool contributorEvan Niuowns shares of Riverbed Technology, but he holds no other position in any company mentioned.Click hereto see his holdings and a short bio.Motley Fool newsletter serviceshave recommended buying shares of Riverbed Technology and Polycom, as well as writing puts in Riverbed Technology. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.
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