Cisco reveals a disappointing forecast, stocks plunge
The company cuts targets, increasing concerns over a slowdown in global tech spending, shares lose over 7%
Stocks impacted: Cisco Systems Inc. (CSCO)
The networking giant presented a disappointing outlook after weak quarterly results, with Chief Executive Chuck Robbins noting that weakness in the service-provider business and emerging markets had spread to the company’s larger businesses. As a reminder, the company reported fiscal first-quarter net income of $2.93 billion, or 68 cents a share, compared with $3.55 billion, or 77 cents a share. This led some major banks cut their target prices for the troubled shares. As such, Bank of Amrerica has lowered its target price from $62 to $56 and UBS analysts dropped the price target from $58 to $54. As a result, Cisco stocks extended losses on Thursday and finished 7.33% lower.
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