Should Investors Worry About Cisco Stock?
Shares of Cisco Systems (NASDAQ: CSCO), the leading provider of enterprise hardware and a major player in the cybersecurity and collaboration markets, were hammered earlier this month. Cisco's fiscal fourth-quarter report, while beating analyst expectations across the board, featured a steep revenue decline and an outlook that called for more pain ahead.
Revenue tumbled 9% for Cisco in the fourth quarter, driven primarily by a 16% decline in the core infrastructure platforms segment. Cisco's customer base is composed of large enterprises and organizations that tend to pull back on spending when the economic outlook becomes cloudy.
With the COVID-19 pandemic far from over, the economic outlook is about as uncertain as it gets. Cisco anticipates a 9% to 11% plunge in revenue in the fiscal first quarter -- guidance that the market did not like. Cisco stock is now down roughly 12% since the start of the year.
Source Fool.com
