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Wise investor
@wise_investor · Aug 15

🚀 Cisco: rethinking strategy and strong growth potential!🌍

Cisco Systems, Inc. $CSCO is a global leader in networking technologies and solutions for communications and IT infrastructure. The company has become a key player in the market with products such as routers, switches and other networking equipment that enable reliable and secure connectivity worldwide.

Cisco has gradually expanded into the areas of software, artificial intelligence and cybersecurity, ensuring its position at the forefront of technological innovation.

The company yesterday announced a positive turnaround in demand for its networking equipment, which is great news for investors. But it also comes with a decision to reduce its global workforce by an additional 7 %. The company also wants to focus more on high-growth sectors such as artificial intelligence and cybersecurity. The move is part of a broader restructuring to streamline operations and strengthen the company's competitive advantage in the market.

📈 C isco shares responded by rising more than 9 % to $50 after the company issued an upbeat revenue forecast for the current quarter. According to CEO Chuck Robbins, Ciscois now in "a more normal demand environment." which is key to steady growth going forward.

In an effort to diversify its product mix and take advantage of the current boom in artificial intelligence, Cisco made its largest acquisition to date last year - for 28 billion dollars to acquire cybersecurity firm Splunk. The company also launched a fund worth $1 billion, that invests in AI startups such as Cohere, Mistral AI and Scale AI.

This restructuring isn't just about cuts - it's a deliberate move towards growth and innovation. 📊

What's your opinion of Cisco? Does anyone own stock in this company?

BC
Bill Combs @billcombs Aug 18

Great company. If I wanted to add another stock to my portfolio, this would be one of the list.

AA
Ashraf Aboudar @ashraf_dd Aug 16

Cisco is already a colossus. I wouldn't expect any wild price increases, but the dividend is nice, results are good, debt is OK, margins are good. For holding as a somewhat stable stock in a portfolio why not.

YE
Yorick Ericson @yorickericson Aug 15

I've kept them for 3 years with a nice buy, but for today's money I probably wouldn't take them. The time test and overpriced Splunk purchase made the decision to sell when I realized they could only grow through acquisitions and buybacks. The HW biz is awfully heavy and as far as the security and SaaS stuff goes there is also a lot of competition so I don't expect any shift there. They've been going sideways for 5 years and I don't see why they should deserve a better valuation. It's kind of a better IBM where I also saw some value with cloud/AI, but traded that for faster workhorses over time.

WI
Wise investor @wise_investor Aug 16

Thanks for the comment, what did you trade it for?

MD
Monday Dayton @mondaydayton Aug 15

Thanks for the post, after $CRWD had its big black day and the outage put a wrinkle in its name, I read somewhere that some customers are opting, switching to $CSCO... I need to read more about it, but I'm watching more developments now. What's your take on it? 😊

WI
Wise investor @wise_investor Aug 16

If you want a pure cybersecurity company I would look at others like $PANW, $CHKP. Or some ETFs focused on cybersecurity.