Experts Says Cisco System Stock Price will Fall Soon

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Chuck Robbins-CEO of Cisco System
Chuck Robbins-CEO of Cisco System

Cisco Systems, Inc. is an American multinational technology company. The headquarter of Cisco Systems is in San Jose, California, in the center of Silicon Valley. Cisco Systems design, develops, manufactures and sells networking hardware, telecommunications gadgets, and other high-technology services and products. Cisco Systems has various numbers of subsidiaries, like OpenDNS, WebEx, Jabber & Jasper.

However, Cisco more focuses on specific tech markets, like the Internet of Things (IoT), domain security, and energy management. It is incorporated in California.

Cisco Stock Analysis and Overview

Market Capitalization– $210.59 Billion

Highest Stock Price– $49.77

Lowest Stock Price– $48.58

Current Stock Price– $49.60

P/E Ratio– 19.08

Current Status– Incline Mode

Cisco System Stock- Cisco System Stock Price
Cisco System Stock- Cisco System Stock Price

On June 8, 2009, Cisco System’s stock was added to the Dow Jones Industrial Average, and it also included in the S&P 500 Index, the Russell 1000 Index, NASDAQ-100 Index and even the Russell 1000 Growth Stock Index.

Cisco Systems was established in December 1984 by Leonard Bosack and Sandy Lerner; they were the two Stanford University computer scientists. They developed the concept of a local area network (LAN) which will be used to connect geographically disparate computers through a multiprotocol router system.

When Cisco System went public in 1990, it had a market capitalization of $224 million and end of the year 2000, and Cisco Systems had a more than $500 billion market capitalization.

Cisco Systems declared an agreement to buy Sourcefire for $2.7 billion, on July 23, 2013. Later, on August 14, 2013, Cisco Systems announced it would cut off 4,000 jobs from its workforce, which was started in 2014 by 6%.

Later that year, Cisco Systems added it has weak revenue due to low sales in emerging markets caused by economic instability, and because of the fears of the National Security Agency planting backdoors in Cisco’s products. Cisco declared funding for early-stage firms who want to focus on the Internet of Things in April 2014.

Cisco Founder- Sandra Lerner- Leonard Bosack
Cisco Founder- Sandra Lerner- Leonard Bosack

The investment fund was basically for the investments in IoT accelerators and start-ups like The Alchemist Accelerator, Ayla Networks, and EVRYTHNG. End of the year, Cisco declared it was cutting off another 6,000 workers or 8% of its global workforce, which was the part of a second restructuring. Cisco Systems announced an investment in Stratoscale on November 4, 2014.

On July 26, 2015, Cisco revealed that the CEO and Chairman John Chambers would resign the post CEO, but will remain as chairman. Chuck Robbins, who is the senior vice president of worldwide sales & operations and also a 17-year Cisco veteran, later he was announced as the next CEO.

Cisco Systems declared the divestiture of its television set-top-box and cable modem business to Technicolor SA for $600 million on July 23, 2015, which is a division formed initially by its $6.9 billion purchase of Scientific Atlanta. This deal was coming as part of its gradual exit from the consumer market, and gradually become the part of an effort by Cisco System’s new leadership to focus on cloud-based products in enterprise wings.

Cisco Systems announced that Cisco would still work with Technicolor on video products. Cisco Systems collaborate with ARM Holdings, Dell, Intel, Microsoft, and Princeton University to founded the OpenFog Consortium, which will promote interests and development in fog computing and this happened on November 19, 2015.

In January 2016, Cisco collaborated with VeloCloud, which is a software-defined WAN (SD-WAN) start-up which is a cloud offering for optimizing branch office networks. Cisco Systems invested in VeloCloud’s US$27 million Series C round which assisted by March Capital Partners.

Cisco Artificial Intelligence- Cisco AI
Cisco Artificial Intelligence- Cisco AI

Cisco Systems announced a cloud-based secure internet gateway, in February 2017, which is called Cisco Umbrella that provides safe internet access to users who don’t use their corporate networks. Later in 2017, Cisco Systems’ price-per-share value increased by over 7%. Robbins was selected to succeed Chambers as executive chairman while performing his role as CEO on December 11, 2017. He also gets the title from Chambers as “Chairman Emeritus.” Cisco Systems announced that it would buy AI-driven business intelligence start-up Accompany for US$270 million on May 1, 2018.

In June 2018, Cisco Systems ranked 444th on Forbes Global 2000 list, which was with US$221.3 billion market cap.

As of 2017, Cisco Systems announced the earnings of US$0.1 billion, which was with annual revenue of US$49.3 billion and an increase of 2.8% over the previous year. In September 2018, Cisco systems’ shares traded at over US$43 per share, and Cisco’s market capitalization was valued at US$213.2 billion.

 

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