First thing I want to say is I’m very happy with the recent stock performance. My ESPP is looking great.
But when I look at the performance of our major competitors in each architecture I’m blown away by there stock performance.
Ent & DC Networking- Arista $369.53
Collaboration- Zoom $289.50
Security- Palo Alto $461.04
DC Software/Apps - VMware $148.87
Where is Cisco going wrong?
Cisco’s strategy of dividend payment enables it to be included in retirement fund portfolios. Quarterly stock buyback $ addresses the equity dilution resulting from the acquisition strategy. The poor record of innovation fuels the acquisition pattern which does not achieve intended goals resulting in further acquisitions. The six year revenue totals - $49.2B, $48B, $49.3B, $51.9B, $49.3B, $49.8B demonstrates the long term and continuous ineffective ELT.
"People here obviously never seem to pay attention to financial performance. In the FY21 results, Cisco delivered product bookings up over 30%."
People here don't seem to understand how to manipulate financial reports. Cisco revenue was $46.8 billion in 2013 -> $49.3 billion in 2021. A $2.5 billion increase in revenue after spending nearly $20 billion on acquisitions in that 8 year period.
Product booking data can be easily manipulated with clever bundling strategies. It's a useless metric to evaluate financial health.
People here obviously never seem to pay attention to financial performance. In the FY21 results, Cisco delivered product bookings up over 30%.
CSCO stock took a dump during the '01 dot.com bubble burst and never recovered. Many if not most employee stock options went under water then, making them virtually worthless. Back in the late 90s the stock reached $200/share and was splitting every six months on average. Only old-timers like myself would remember this.
Once you sell it and see how much the government takes out in taxes, it doesn't really matter anyway how much it goes up. Uncle Sam gets his take.
"But at the end of the day, Cisco's stock price is growing primarily because the tech industry market is growing - except Cisco is lagging behind."
Cisco stock is growing because interest rates are 0%, which results in the inflation of assets. It's called inflation... not increased revenue or improved products/services
You guys. If you look at the 6 month performance (I couldn't be bothered to look at more) Cisco has the highest growth. You guys love to moan don't you.
I assume you just looked at the price and thought...wow they are high.
Please don't become accountants. Especially ChuckBLM
Cisco is no longer a young growth stock but rather a mature company.
No company can grow 20-30-40% or more indefinitely.
Cisco's revenue isn't growing as fast as it should, or as fast as the competitors you listed. Cisco's numbers are positive overall because of massive cost-cutting measures. Less spending means more net revenue. But at the end of the day, Cisco's stock price is growing primarily because the tech industry market is growing - except Cisco is lagging behind.
Cisco pays a dividend. When that happened the company switched from a growth company to a M&A company. This is why our stock doesn't go up much. Most of the money once used for R&D, etc. now pays for the dividend.
Take the average of all these companies , if Cisco was doing well it would have been around $300-$325, that alone tells you that Cisco is dogsht