Cisco (NASDAQ:CSCO), Akamai (NASDAQ:AKAM) Drag Tech Stocks Down

After disappointing earnings guidance for the current quarter, shares of Cisco (NASDAQ:CSCO) and Akamai (NASDAQ:AKAM) are getting battered.

The issue at stake is how much businesses and the government are spending in the quarter, and if tech spending is down.

Investors obviously believe spending continues to be down, the reason for the weak guidance from both companies.

Cisco noted government spending in the fourth quarter dropped, and over the next year it will probably continue to be the case, getting worse.

For Akamai, another problem is price competition, where the company must cut prices for its Web streaming services to continue to compete. That will of course pressure margins and earnings.

Akamai was trading at $40.15, dropping $7.84, or 16.34 percent, as of 12:24 PM EST. Cisco was trading at $19.12, falling $2.92, or 13.23 percent.