Out Fox The $treet

Spotify trades at a discount in the streaming sector due to the direct listing dynamics. The streaming music service continues to expand leadership in the sector over Apple Music. The stock trades too cheap at 4x sales estimates. Oddly,  Spotify  ( SPOT ) trades near the post direct listing lows, while  Netflix ( NFLX ) surges on a bullish earnings report. The streaming services for music and video aren't exactly the same, but the opportunity is similar; making the case for owning the laggard of the group. Read the full article on Seeking Alpha.  Disclosure: Long AAPL, TWX. Please review the disclaimer page for more details. 

Ciena ( CIEN ) soared after  reporting  an EPS beat and non-GAAP profits for the first time in several quarters. CIEN had a impressive mix of improved revenue combined with a reduction in operation expenses. The real question is whether this combination can last in the competitive environment. Ciena has long been a leading optical and networking equipment provider back to the internet bust in 2000. Since the bust, CIEN has had some good periods, but it has never been able to flourish. The company continues to make lower highs every 4 or so years with peaks around 2004, 2007 and 2011.  Read the full article on Seeking Alpha.  Disclosure: Long RVBD. Please review the disclaimer page for more details. 

According to a Gleacher analyst, Cisco Systems ( CSCO ) is expected to cut about 5,000 jobs  in August. That would be a massive 7% workforce reduction for a company with roughly 73,000 employees worldwide. According to the analyst, that reduction would be similar to large cuts the company took back in 2001 and 2002. Clearly those cuts were successful, or at the very least didn't preclude CSCO from being a dominant tech company in the 2000s. Read the full article at Seeking Alpha.  Update: According to Bloomberg and other sources the job cuts might actually approach 10,000 or double the original estimate. That number is even scarier as the problems are larger than originally thought. Productivity will be disrupted in a major way with that many people cut. Disclosure: Long CSCO and RVbD in client and personal accounts. Please consult an investment advisor about your individual position. This information is for informative purposes only and should not be construed as p...

This article is the fifth in a  series  focusing on sectors that have struggled to recover from their pre financial crisis levels. Large-cap techs are one of the most hotly debated sectors today. With tech companies like Apple ( AAPL ), IBM ( IBM ) and Oracle Corp. ( ORCL ) trading significantly higher than 2007-08 highs, many investors expect the laggards to catch up soon while others expect them to slowly decline. The sector generally peaked at the end of 2007, so the companies mentioned have been down for over four years now. The sector is also very different from the others covered, since none of the companies were anywhere close to all-time highs reached in the internet bubble of 2000 when the crash started in 2007. Also, while these stocks remain below financial crisis highs, they aren't down as much as the other sectors, partly due to strong balance sheets loaded with vaults of cash. Read the full article at Seeking Alpha.  Disclosure: Long AAPL, CSCO, and MSFT...

After the close on Thursday, Accenture ( ACN ) reported earnings that surpassed earnings estimates. The company continues to report strong numbers with 21% revenue growth and 27% earnings growth. More important to us is that all though the stock traded at an all time high during the quarter at $58.21, the company bought back $644M worth of stock at an average price of $56.50. The stock remains a top five pick in our  Net Payout Yields (NPY) portfolio , which invests in stocks with high yields comprised of dividends plus stock repurchases. Read full article at Seeking Alpha .