5 Tech Winners I Love Right Now

Revenue climbed 31% to $301 million during adjusted profits rose 71% to $0.17 a share. Wall Street was hoping for $0.18. Worse, Rackspace converted just 33.4% of revenue as earnings previously interest, taxes, depreciation, and amortization -- or EBITDA -- versus 36.1% in the fourth quarter. The drop appears to have worried some investors and analysts.

The year progresses

But that's only if demand for advanced tech services holds up as the year progresses; Cisco Systems chief executive John Chambers isn't so sure that will be the case. In commenting on the networking giant's fourth-quarter outlook, Chambers this week referred to "cautious IT spending, especially in enterprise accounts."

Either way, my advice is to remain focused on CEO Marc Benioff's long-term goal to build a $10 billion business. Last quarter, his team took a big step with a large sale to Hewlett-Packard . Evidence of furthermore megadeals should give bullish investors the confidence needed to stay invested.