Did Cisco miss a golden opportunity?

Cisco also unveiled plans for a $1 billion cost-cutting program, most of that to take place by the end of the current quarter—job cuts will be part of the equation.

William Blair’s Ader remains cautious. “Put simply, we believe Cisco missed a golden opportunity to fundamentally reshape its business post tax reform/repatriation, instead opting to repurchase nearly $37 billion in stock in 2018 and 2019,” he wrote. “Now, with sky-high valuations for growth assets, we worry that it is too late.” Ouch.

https://www.barrons.com/articles/tech-stocks-arent-immune-to-covid-19-just-look-at-ciscos-earnings-51597445050

Comment! It's anonymous!

3 replies (most recent on top)

Cisco is not like MSFT or ORCL, it is more a system company like Sun Microsystem. It may not have the right talents to build the future cloud infrastructure without major acquisition. Most of its talents are still on the LEGACY networking area, many PE or DE is still on switch/router/security area. Take a look of AppDynamic, how much revenue it generates, close to nothing. Take a look of Webex, how Cisco screws it up in the last 15 years. Even though Cisco buy more companies like Viptela (SD-WAN), very soon it becomes obsolete. Take a look of the Inseime SDN, it goes nowhere (but still make $1 or 2B with Cisco push) and many of my CCIE network admin give no sh– to ACI and joke about it as (What A Cisco id–t or innovative thing).

That article was illuminating and completely pertinent for Cisco now. We’re all just grease for the wheels to enrich the execs. Makes me more excited to accept ER and try something else.

https://www.epsilontheory.com/yeah-its-still-water/ An excellent article about Texas Instruments draw the parallels rather than investing into high growth assets company bought back shares to inflate the share prices

Thread regarding Cisco Systems Inc. layoffs

Did Cisco miss a golden opportunity?

3 replies (most recent on top)

Post a reply