thanks to AI historical market miscomprehensions around Cisco have turned positive-- how long will it last?
6 replies (most recent on top)
The rising tide lifts all boats, even boats holed below the waterline. Even the wreckage of boats.
Boy, the fall is going to hurt even more. Make the most of RSU and ESPP whilst you can because it is going to crash big time. Don't be left holding on to $120 stock when it'll be worth $30 soon. Downvote all you like, believe in pi-y dust and unicorns all you like because that's what Cisco's vision is - fantasy.
Still has a lot of runway.
Ride the wave b/c it's certainly temporary. Between the AI bubble and CFO's current strategy, which at some point, will have to pivot from "grow the bottom line faster than the top" to something else, and when it does, predictably, margins, profit, and cash will all take a hit, resulting in investor panic and an immediate selloff. I really don't see how the CFO can exit his strategy gracefully without a serious hit to the stock price. It's not like Cisco is going to make its own AI hardware to replace Nvidia, and no magic margin or profit fairy is going to replace the extreme cost savings being instituted right now. Plus, there's a cost floor at which no more cost can be saved, and at that point, it's already harming the business in other ways. So yeah, enjoy the stock price for now (at the expense of employee stress & well being). The longer the CFO keeps to the current strategy, the more pronounced the pullback will be when it changes.
For those who got the pink slip it is not exactly heart warming to see this. After a long career it is not exactly the gold watch retirement gift.
Next ESPP purchase date is just around the corner. I joined about a year ago and my first batch of RSUs vest in a couple of months. So I'm hoping this continues, or at least doesn't drop, for about 2-3 months.
look at TSLA defying all investment fundamentals, we are only going up from here! Cisco networking is the backbone infrastructure for AI! Time to start coasting in semi-retirement mode from the surge like Nvidia employees!