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Cisco’s Defensive Moves Are No Cure-All

1 | By Strategic Tech Investor Staff

It hurts when the technology you built your business on starts to drag you down. And that’s just what’s happening at Cisco Systems Inc. (Nasdaq: CSCO), which reported a 2.6% drop in quarterly revenue last week. The drop came from lessening demand for Cisco’s switches, its chief legacy product. Cisco does have a restructuring plan, however, including cost cuts, layoffs, strategic acquisitions, and repositioning itself toward a cloud model.

Not so fast, Michael told CNBC World listeners late last week. “You can’t cut your way to growth,” he says. And moving a hardware-based business to the cloud is going to cost a lot more and take a lot longer than anyone else thinks. Michael graded Cisco’s quarterly report a “C to C- quarterly” – and so it’s not on his “Buy” list right now. What legacy tech business also reorienting itself toward the cloud model is? Watch the video below to find out.

 

 

One Response to Cisco’s Defensive Moves Are No Cure-All

  1. Daniel Buckingham says:

    Sir i am sure things are looking good for the U.S.A. stock market and a potential much needed spring clean being done at the Whitehouse by new President Trump for too long politics have been dominated by lawyers.President Trump has investor traits and despite his ups and downs when it comes to investing there is no doubting he is a winner and these traits i think will serve him and the American economy well as i see the new president encouraging investment in the construction industry which is perhaps the biggest industry in the world when it comes to giving spin offs to related sectors and i also think President elect will be good news for investors in the arms industry.

    However i do hope the President takes on really good advisors who will keep telling him a not very well known fact that could be used to wipe out American debt in a very simple and uncomplicated way.American law states that Platinum maybe minted in any denomination so in legal terms trillion dollar coins could be minted and become legal tender and it could boost and give real value to the dollar which at present is backed by nothing of substance.

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