Riverbed (Nasdaq:RVBD), Blue Coat (Nasdaq:BCSI), Rackspace (NYSE:RAX) Plunge on F5 Miss

The "miss" by F5 Networks (Nasdaq:FFIV) has caused reverberations across the sector, as Riverbed Technology (Nasdaq:RVBD), Blue Coat Systems(Nasdaq:BCSI) and Rackspace (NYSE:RAX) all had their share prices plunge on concerns the sector may be slowing down.

It's all about momentum with the F5 story, and if it appears that's what's happening (yet to be determined), the companies would take another big hit before the smoke cleared.

Interestingly, it's not that the quarter for F5 was bad, but they and the other companies in the sector are simply victims of the sectors' recent success, which had generated high expectations that would eventually have to be disappointed.

More than anything, it appears it was the lower guidance by F5 for 2011 that made the most impact.

Rackspace was trading at $29.92, dropping $3.51, or 10.50 percent, as of 11:25 AM EST. Blue Coat was trading at $27.53, down $2.67, or 8.84 percent. Riverbed was at $34.08, losing $2.89, or 7.82 percent.