NEW YORK - One would think Cisco traded on the AMEX, or was a low level Nasdaq company after its stock price drop following its last two quarters instead of the lofty Dow Jones Industrial Average. Today CISCO plunged 16% which was a little worse then the 10% drop in their last quarter. Cisco said revenues were $10.75 billion and net income came in at $1.9 billion.
The company has not shown solid revenue or earnings growth over the last few years but the stock is not valued like a Netflix, or an Amazon and isn't a pharmaceutical company that just had its just had its drug rejected by the FDA. Investors should know by now what to expect from Cisco. It is pretty absurd to be seeing stable blue chip company's losing 16% of market value in a single day. It goes to show how the stock market is can act as a casino from time to time.
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