What is going on with CSCO? Massive decrease last Wednesday - why? and decrease ongoing today. Seems like investors are mistrusting the AI propaganda?
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Answering that question is beyond easy. Savvy investors and fund managers can sense when a company reaches its apex (long time ago). It takes a little longer for the average Joe to figure that same thing out. The crux of their issues are uninspiring leadership, inability to retain and pay top and mid-tier talent, falling behind the curve in technology trends and then overspending in an attempt to catch up. Their internal spend efficiency per person is not low. Problems don't happen at once, but it shows up when looking at a 3 to 5 year chart. Of course they can lean on their CFO to pull some tricks out of the bag in the meantime, but there has to be something in the counterbalance to facilitate that recovery. clearly not the case here, the can just continues to get kicked.
Revenues from all core businesses have dropped sharply and this trend is going to continue. Cloud and AI initiatives produce products that no one wants. The internal execution is in chaos. Cisco was once a technology and engineering driven company and you bet it was long time ago. The current management treat those who face customers like dirt. No wonder CSCO continues to decline. Besides doing more acquisitions, there is no hope to prevent the revenue stream from going down. With a ballooning employee number, worker bees prepare to embrace more LRs.
Analysts are willing to accept some stretching of the truth.
Unfortunately, the chasm between Chuck's attempt to position Cisco as a leader within AI and reality is just too great for them.
It's the same ol' story the Cisco has tried to tell with other recent market transitions (e.g. Cloud). "Hey, we have lots of slides with AI on it. We're market leaders."
Potential buyers are looking at the stock to see if it’s worth the investment. Why should I spend millions on a company’s product who’s stock is dropping when the competitors are thriving?
I put a sell order in a few months ago.But I'd just missed the peak (yeah, greedy) and now seen it retreat about 15-20%. My sell order is still there, looking lonely.
PowerPoint AI. Competitors were doing AI whilst Cisco were wondering what it was. Cisco spiralling into irrelevance.
We're going to hit $35 before year end. This ELT is so incompetent they probably don't understand they're responsible for the slide. Nobody's buying this AI networking horse manure but the ELT. AI happened at OpenAI, Meta, Google and Microsoft without Cisco's powerpoints.
Cisco stock is a dead money. Those LRd, sell their shares, while $28B debt buying Splunk is double hit on CSCO stock. It is long time from now before all the excesses including most leadership (drawing fat paychecks and their only productivity is to protect their jobs) while technical work-force is trashed. ELT needs to wake up and clean top heavy leaders doing nothing and just attending non-customer meetings. How low with CSCO go? Its already lagging big with S&P 500, and other tech leaders. Wake Up CISCO ELT!
Stock is dead money until new technical CEO comes in and hits the reset button by starting to sell off chunks of the company and start all over again
I’ll hold CSCO for the time between my RSUs hitting my account and pushing the sell button. It’s complete trash for the past 5 years I’ve been here.
I always laugh at people who are still investing in CSCO... sold all a while and doing good with 6% APY in Govt bonds.
The investors saw our AI plans !
STOP ! ELT and Executives are busy with their own promotions and survival tactics. Change your expectations !
It is a side-effect of the way employees are treated with all the lies, layoffs, and executive privilege. We need a good class-action lawsuit for Cisco to learn their lesson, and then things will turn back around! Give all the laid off employees their lost stock options back, offer anyone impacted over 55 or 60 early retirement, and cut the excessive executive salaries.
$30B AI Splunk will save the day! Yes trolling, unfortunately.
Maybe investor have realized that Cisco is a sinking ship.
Its instructive to take a look at ANET and CSCO over the last 5 days and 5 years:
https://www.google.com/finance/quote/CSCO:NASDAQ?comparison=NYSE%3AANET&window=5D
https://www.google.com/finance/quote/CSCO:NASDAQ?comparison=NYSE%3AANET&window=5Y
Cisco had a momentary growth spurt in 22 due to supply chain issues resolving but I doubt the splunk acquisition will in anyway lead to growth. They should have bought datadog not legacy splunk. Story of the last 10+ years.
Glad I had sold 100% CSCO in March after being laid off.