SPLK - Cisco: Short-Term Volatility Expected But Ignore The Current Narrative

2024-01-30 17:11:52 ET

Summary

• The narrative around Cisco Systems, Inc. has worsened following the most recent earnings release, and this is likely justified in the short term.
• There are risks involved with the company's recently announced acquisitions, but the business is on a long path towards transformation.
• While most investors remain focused on the short-term revenue growth, Cisco is improving its profitability profile.
• Cisco stock remains attractively priced as a long-term investment opportunity.

The sentiment around Cisco Systems, Inc. (CSCO) has been on a slow and steady decline in recent years as the company is struggling to adapt to the new reality of cloud-based solutions....

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