Rob Black's Tech Stock Report

Includes: CSCO, MSFT
by: Rob Black (NYSE:CRM) announced a new technology to let users customize its online service, advancing the company's effort to court larger companies as customers.

Microsoft's (NASDAQ:MSFT) MSN unit has signed a deal with Ingenio to place so-called pay-per-call advertisements on MSN's search service for mobile devices. This is MSN’s latest move to try to turn cellphones into a revenue source.

Barron's reported that as sales and profits for Cisco (NASDAQ:CSCO) begin to flow from new customers and new markets, like Internet video, Wall Street is likely to raise its price targets by at least 15%. Suppliers like Lucent (LU) and Nortel (NT), have seen flat or falling demand from their customers in recent years. But spending on Internet equipment by phone and cable operators is growing by 17% a year. But unlike the network spending of the 1990s, which was financed by stock sales, today's outlays are funded by these companies' cash flow. The spending is likely to increase. When Verizon (NYSE:VZ) began installing its FiOS fiber-optic network in Massachusetts last year, Comcast (NASDAQ:CMCSA) countered by boosting the download speed of its cable-modem service and upgrading its routers. Future services like Internet Protocol-based television and high-definition video-conferencing systems give Cisco some future tricks up their sleeves. Don’t forget Cisco is seeing nearly 50% a year in is sales of systems in emerging markets like Saudi Arabia and India.

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