Why Cisco Systems, Weibo, and Aurora Cannabis Slumped Today
Thursday didn't feature any big moves on Wall Street, with major benchmarks remaining little changed at the end of the session. Market participants didn't get a whole lot of guidance on key issues affecting their views, and comments from Fed Chair Jerome Powell seemed to indicate that the current level of economic expansion could stay in place for the foreseeable future. Yet some companies had to deal with unfortunate news that sent their shares lower. Cisco Systems (NASDAQ: CSCO), Weibo (NASDAQ: WB), and Aurora Cannabis (NYSE: ACB) were among the worst performers. Here's why they did so poorly.
Shares of Cisco Systems fell 7% after the company reported downbeat fiscal first-quarter financial results. The networking giant said that revenue managed to climb 2% from year-ago levels, with a 12% rise in adjusted earnings per share. Yet guidance for the coming quarter was less favorable, including projected top-line declines of 3% to 5%. Some of the uncertainties about the likelihood of sustained economic growth in the future are starting to make Cisco's customers seem to hesitate before making big purchases. Without a nice bump from an external event like a resolution to trade disputes with China or an economic recovery in Europe, it could take a while for Cisco to bounce back fully.
Image source: Cisco Systems.
Source Fool.com
