F5 Networks Soars 10%: buy the Dip at this Price…

Networking stock F5 Networks (FFIV) tallied returns of 10%+ on Wednesday after the company’s Beat and Raise” earnings report.

The company helps manage, secure, and optimize application delivery in data centers and cloud environments, enhancing company performance, security, and availability of network-based applications.

F5 reported earnings per share of $3.84 per share, a beat of $0.48.  Revenue for the quarter also came in better than targeted at $766 million.  Analysts had expected to see the company report $715 million for the quarter.  The company’s revenue reflects 10.5% growth over last year.

In addition to the earnings beat, F5’s management raised their outlook for next year’s earnings per share and revenue though some challenges may be seen over the next quarter according to management’s comments. 

F5’s results were driven by a stabilization of IT spending.  In 2024 many IT service companies, including F5, softened their outlooks as corporations were slowing the process of signing new contracts.  Companies like F5, IBM (IBM) and SalesForce.com (CRM) were affected by the slow in spending.

Companies have started investing in their technology services again as the outlook for 2025 has improved.

Shares of F5 have enjoyed an incredibly strong bullish trend with shares’ 50-day moving average moving in a smooth uptrend.  The trajectory of this popular trendline 

Today’s move is challenging the round-numbered $300 price which is likely to provide short-term resistance.

The round number combines with an overbought reading of the stock’s Relative Strength Index (RSI), suggesting that investors can expect a short-term pullback after today’s spike higher.

Short-term support is likely to act as a catalyst for higher prices as the stock approaches the $285 price.

F5 Network’s stock remains in a bull market trend with a price target of $375.

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