Internet equipment suppliers like Cisco, Nortel and Ciena will not miss numbers in Q3, though I am beginning to see cracks in their armor. Investors pile into these stocks at ever more absurd prices because they are sure that there is no earnings risk in coming quarters. However, investors are ignoring the longer-term implications of the vast overbuild of Internet infrastructure capacity (bandwidth, hosting centers, etc.) that has been occurring over the past few years.
Mania-driven thinking has persuaded investors to believe that the demand for Internet infrastructure is limitless.
~ Fred Hickey, editor, The High-Tech Strategist, September 2000