AI infrastructure is where the opportunity is.
Dump adjacencies like Collab, Security, whatever Duo is, and Observability (aka Dozen Eyes and Sp--k). I won’t even mention CX and Outshīt, which are too obvious
Do those things and Cisco is legit $200 stock.
Sorry, not sorry.
200 is actually in reach
120 today
CR should admit defeat and dump SBG, instead, he's doubling down on it.
Any day-trader knows, you don't double down on a bad bet...but CR has invested his pride in SBG as his personal project and is willing to siphon off the wealth generated by the hardware business to service his vanity.
If this were actually an important company like Apple or Nvidia, analysts would be deeply critical, but it's Cisco, so no one even cares.
BTW, CR, if you're reading this...why does almost every product in SBG pay to use DataDog?
Zoom destroys webex due to incompetent leadership. They know they f'ed up, but won't admit it.
Cisco is lacking in technical leadership in many areas. They are not the market leaders they once were 20 years ago. They acquire companies and most of the best/smartest leave as soon as they vest.
They are just a gorilla that can outmaneuver most competition since they are so large and can absorb lopsided deals better than a smaller company. The product portfolio breadth is also very helpful getting deals done. You may rethink buying Cisco products, but you won't get fired over it.
So start with a trailing P/E of almost 35 and remove sources of earnings to more than double the price. If you aren't a director or VP now you should be.
What you said is true, the opportunity is huge. Regrettably Cisco won’t play any part of it. A bit of networking and wifi in corporate offices is not where the industry action resides. Cisco was completely outmanoeuvred
I'm here for the ride. CSCO is back!
Outshit for sure