Cisco's Stock Rises on AI-Driven Earnings and Positive Outlook
Cisco Systems' price target has been increased following a strong earnings report driven by AI-related growth, reflecting positive investor sentiment and future growth prospects.
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finance1 year ago
After-Hours Stock Movers: Ibotta, Cisco, CNH Industrial & More
Ibotta, Cisco Systems, and CNH Industrial are among the companies experiencing significant stock movements in after-hours trading.
"SEC Alleges Insider Trading by Arista Networks Co-Founder Andy Bechtolsheim"
Billionaire co-founder Andy Bechtolsheim, accused by the SEC of insider trading, will be barred from serving as an executive or board member of a public company for five years after allegedly illegally trading on Cisco Systems Inc.’s acquisition of Acacia Communications Inc. in 2019.
"Cisco Cuts 5% of Global Workforce, Slashes Full-Year Guidance"
Cisco Systems reported better-than-expected fiscal second-quarter results but reduced its full-year guidance and announced plans to cut about 5% of its workforce, or more than 4,000 employees, due to concerns about demand. CEO Chuck Robbins cited caution and scrutiny of deals amid high uncertainty in the macro-environment. The company also mentioned slowing demand, ongoing inventory correction, and weak demand from telco and cable service provider customers. The news led to a negative reaction from Wall Street analysts, with concerns about the company's performance and the impact of the layoffs.
"Cisco Systems Announces Layoffs of Over 4,000 Employees Amid Tech Industry Challenges"
Cisco Systems is laying off over 4,000 employees, representing about 5% of its workforce, as part of a reorganization expected to cost an additional $800 million. The move comes amid sluggish demand for its products and software services, reflecting a trend of job insecurity in the tech industry despite continued profitability. The company's stock price has gained just 6% in a soaring market, prompting deeper payroll cuts. The industry is shifting focus to artificial intelligence, with experts predicting more job cuts as AI technology advances. Cisco's CEO highlighted the company's position to benefit from AI adoption through its relationship with chipmaker Nvidia.
"Cisco Systems Announces 5% Workforce Reduction, Cutting Over 4,000 Jobs"
Cisco Systems is laying off over 4,000 employees, representing about 5% of its workforce, as part of a reorganization expected to cost an additional $800 million. This move follows a previous cut of 5,000 workers in late 2022 and comes amid a $28 billion acquisition of Splunk. The tech industry has seen a wave of significant layoffs at prominent companies, despite their continued profitability, as they navigate uncertain economic outlooks and shift focus to areas like artificial intelligence. Cisco's stock price has seen minimal gains, and its latest quarterly results and forecast have led to a nearly 6% drop in extended trading. The company aims to capitalize on AI adoption and its close relationship with chipmaker Nvidia.
"Top Non-Nvidia Big Tech and China Stocks to Watch as AI Boom Accelerates"
As AI becomes mainstream, companies like IBM, ServiceNow, AMD, Salesforce, Cisco Systems, and Dell Technologies are poised for growth in 2024. IBM's focus on hybrid cloud and AI, ServiceNow's diversification and innovation, AMD's competitive AI graphics processing units, Salesforce's cloud CRM leadership, and Cisco Systems' investments in data security and observation position them to capitalize on the increasing enterprise spending on AI strategies. Despite economic uncertainties, AI investment is expected to remain substantial, shaping the economy and prompting significant enterprise spending.
Cisco's Fallout Outlook and Billion-Dollar AI Promise Impact Quarterly Results
Cisco Systems reported better-than-expected quarterly results, with revenue rising 7.6% YoY to $14.67 billion and net income increasing to $3.64 billion. However, the company slashed its fiscal year earnings outlook due to consumers being busy implementing previously received offerings. This weak guidance overshadowed the positive results, causing Cisco's shares to fall by as much as 13%. The company also announced partnerships with Splunk and Nvidia to enhance workplace collaboration and unveiled new AI-powered products. Cisco is confident in gaining $1 billion worth of AI infrastructure orders from cloud providers by 2025.
Stocks Tumble as Walmart's Warning Sends Dow Jones Falling
The Dow Jones Industrial Average fell 0.1% due to cautionary outlook from Walmart and slowing order growth for Cisco Systems. However, the S&P 500 and Nasdaq closed slightly higher. Crude oil prices dropped nearly 5% amid concerns of slowing global demand. Microsoft rose as it announced new AI accelerator chip and Cobalt chip. Alibaba shares fell 9% after the company said it would not spin off its cloud business. Macy's stock rose over 5% despite declining sales. General Electric and Williams-Sonoma broke out of their respective bases. Google parent Alphabet is nearing a buy point.
"Cisco's Stock Tumbles on Disappointing Earnings and Revenue Outlook"
Cisco Systems reported fiscal first-quarter earnings that beat estimates, but product orders declined. The company's guidance for the current quarter fell short of expectations, with lower earnings and sales forecasts. Cisco stock tumbled approximately 11% in extended trading. The company is shifting its focus towards software and services through acquisitions, such as the planned purchase of software company Splunk.
"Tech Giant Cisco Partners with M&A Firm Tidal for $28B Splunk Acquisition, Signaling a Resurgence in Tech Investments"
Cisco Systems has enlisted the services of Tidal Partners, a new mergers and acquisitions advisory firm, for its $28 billion acquisition of cybersecurity firm Splunk. Tidal Partners, founded by former Centerview Partners dealmakers David Handler and David Neequaye, served as the sole financial adviser to Cisco, while Qatalyst Partners and Morgan Stanley advised Splunk. The win for Tidal Partners comes as more technology bankers launch their own firms amid a slowdown in dealmaking in the sector.
"Top Stock Movers: Walmart, CVS Health, Adobe, and More"
Cisco Systems' shares rise 4% after beating earnings expectations, while Walmart's stock falls 2% despite surpassing estimates and raising its full-year forecast. Hawaiian Electric tumbles 15% due to concerns over potential liability in Maui's wildfires, and CVS Health slides over 9% as Blue Shield of California ends its pharmacy benefits partnership. Adyen, Europe's rival to Stripe, loses 36% after reporting worse-than-expected sales and profit drop.
"Walmart's Strong Earnings and Cisco's Performance Highlight Pre-Market Moves"
Walmart's shares rose 1% after the retailer raised its full-year forecast and reported better-than-expected earnings and revenue. Cisco Systems gained 2.2% following its earnings beat, while Adobe saw a 2% increase after being upgraded by Bank of America. Hawaiian Electric's stock sank nearly 18% due to concerns over potential liability in Maui's wildfires, and CVS shares tumbled 7% after Blue Shield of California announced it was switching to Mark Cuban's Cost Plus Drug Company and Amazon Pharmacy. Additionally, Wolfspeed's shares dropped 17% after missing earnings expectations, and Ball's stock rose 3% as BAE Systems acquired its aerospace business for $5.55 billion. VinFast Auto's shares fell 5% as the electric vehicle start-up's stock fluctuated after its recent merger.
"Late-night Market Movers: Cisco Systems, Synopsys, Wolfspeed, and Beyond"
Cisco Systems' shares rose 2.5% after the company reported better-than-expected fiscal fourth-quarter earnings, with adjusted earnings per share of $1.14 and revenue of $15.2 billion. Electronic design automation company Synopsys saw its stock rise 2.3% after beating earnings expectations, reporting adjusted earnings per share of $2.88 and revenue of $1.49 billion. However, Wolfspeed's shares plunged 13% after the company's fiscal fourth-quarter earnings missed expectations, with an adjusted loss of 42 cents per share. Packaging company Amcor's stock gained 2.5% after reporting adjusted earnings per share of $0.19, beating analysts' forecasts, although its revenue fell short. Hawaiian Electric's shares slipped nearly 2% amid concerns about potential liability in the Maui wildfires, while Vietnamese electric vehicle maker VinFast Auto saw its shares dip about 5% after a significant surge the previous day.
Stocks Rise on Debt-Ceiling Deal Hopes and Strong Earnings
Dow Jones futures were little changed early Thursday, along with S&P 500 futures and Nasdaq futures. Synopsys (SNPS) and Cisco Systems (CSCO) reported late Wednesday with Walmart (WMT). Alibaba (BABA) out before the market open. The stock market rally bounced back Wednesday on optimism that President Joe Biden and Congress will reach a deal to raise the debt ceiling. Several stocks broke out or flashed buy signals Wednesday, including Broadcom (AVGO), ServiceNow (NOW), New Relic (NEWR), Taiwan Semiconductor (TSM), Royal Caribbean (RCL) and Darden Restaurants (DRI).