In 2021, Cisco stock ( NASDAQ:CSCO ) experienced strong growth as investors switched to “value” equities related to the recovery of the American economy. CSCO stock has decreased this year due to supply-chain problems and rising interest rates.
For CSCO stock, some technical assessments have tipped upward.
Bullish analysts forecast that CSCO will surpass Arista Networks in market share for cloud titans (ANET). By signing up customers like Microsoft (MSFT), Facebook (FB), and Amazon.com (AMZN), Arista was able to outsell Cisco in cloud data centers.
Comparing Cisco with ANET stocks
However, other analysts predict that Arista will continue to dominate cloud networking. On September 30, ANET stock was highlighted as the IBD Stock of the Day.
According to a research by Barclays analyst Tim Long, “we expect the robust mid-teens growth rate for ANET will be sustainable for a few more years.” “We anticipate a continued increase in market share in the data center switching sector. ANET has successfully diversified its revenue sources away from its two main clients, Facebook and Microsoft.”
Added him: “Cisco doubled its relative market share in the cloud sector between 2019 and 2021, but its growth has since stagnated. Slow progress has been made toward a more software-based strategy, and the expansion of the product backlog has been detrimental. Nevertheless, despite similar backlog dynamics, we observe rival businesses expanding more quickly in the software sector, which is likely revealing a weakness in some Cisco stand-alone software offerings.”
But in 2023, spending on cloud infrastructure is anticipated to decrease. ANET stock’s third quarter earnings are due on October 31.
On August 17, Cisco’s shares rose in response to its fiscal fourth-quarter earnings announcement. Cisco provided fiscal 2023 revenue guidance that was higher than anticipated. Analysts disagree...
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