Monday, 24 March 2014

Cisco News

Cisco News came in when it announced it would invest US$ 100 million in Australia in the form of an innovation fund. The decision was made taking into account the country’s capacity to be a leading innovation and development center especially in the sector of mining and minerals.  In addition to this, Ken Boal, the Vice president of Cisco New Zealand and Australia said the funds would be allocated to best projects globally and not particularly in a country.

The Cisco share Price is currently trading at $21.64 down 0.8% from last night’s closing price which was $21.83. The Cisco Stock price has Depreciated 3.5% since
the start of 2014 and appreciated 3.8% since March 21st last year. Cisco Revenues have declined recently due to the slowdown in the emerging markets that are focusing more on cloud computing services instead of hardware. But Data Centers which is a product for Cisco based on cloud services saw 10% growth (YoY) because of the transition. And the company has guided revenues to decline by around 7% in the next quarter.

Cisco Earnings per share is $1.5 currently. The earnings increased recently due to the share buybacks done by Cisco. Due to the slowdown in revenues and sales from majority of geographic segments including BRICS, America, Asia Pacific Japan and China segments, Cisco Stock is rated as a downgrade by 50% of the Research firms.
Cisco Shares give a negative outlook in the upcoming months due to the reasons discussed above.

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