12-26-2018, 10:40 PM
While Ciena still has some company-specific drivers like its datacenter interconnect business, its new WaveLogic Ai chipset, and its growing software business, this company has long struggled to regain credibility from the Street and confidence in management’s long-term goals for revenue and margins.
The Ciena Roller Coaster Is Back In The Buy Zone - Ciena Corporation (NASDAQ:CIEN) | Seeking Alpha
Long-haul metro is likely only going to be flat to up slightly in 2018, and that’s going to hit Ciena, Infinera (INFN), Nokia (NOK), and other players in the market. Metro has been stronger for Ciena, but here too there are worries – particularly as to whether or not Verizon’s (VZ) spending peaked in 2018... It’s no small matter that potentially two-thirds or so of Ciena’s revenue base could be vulnerable, but there are some drivers to offset a weaker overall environment.
The Ciena Roller Coaster Is Back In The Buy Zone - Ciena Corporation (NASDAQ:CIEN) | Seeking Alpha
The set-up going into 2019 isn’t perfect. Obviously the markets are jittery. On a more company-specific basis, there’s still some risk of disruption from new product introductions from Acacia (ACIA) and Infinera (INFN), as well as risks from service provider budget priorities and a possible slowdown in datacenter growth.