cisco’s elt decided to blow $28 billion on splunk right before a downturn but don’t worry, they’ll be fine... (splunk will be, in hindsight, the aquisition that ki-led cisco)... and yet... splunk was a fine company with good products, but now cisco has already started destroying them... Last layoff showed splunkers hoq disfunctional, unproductive, shortsighted and incompetent cisco elt really is. sad.
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Stock has done well
Caused entirely by layoffs and using the acronym AI in press releases. You'll notice both revenues and earnings are down year over year for the past four quarters where the first down quarter was completed a month and a half before completing the acquisition of Splunk. The next quarterly numbers should be out in a few weeks but the YoY numbers are going to be relative to a previously down quarter.
As @c1+1jjxqcmyf below points out, we still don't know if Splunk has grown, stayed the same or contracted since its acquisition last March. Without that everything else is noise.
Stock has done well
Field teams are still not integrated - and literally have opposing goals - to the point where the Splunk teams won't talk to their Cisco counterparts
Gary has taken a very demonstrative leadership position and evidently paying some consulting company a ton of cash to force training down the throats of field sales teams without any understanding of the difference between portfolios sellers and technology sellers
Meanwhile CX is off picking daisies in right field
Splunk unlocks a lot of AI capability that we can synergize into revenue.
Splunk conned cisco. Scam company
cisco’s elt decided to blow $28 billion on splunk right before a downturn...
What downturn? Cisco's successful competitors maintained significant revenue and earnings growth over that time. If Cisco was tanking doing what they were doing they'd have to do something different. As of yet no one has shown if Splunk is returning more than, the same or less than the $4B in revenue and $1B in earnings they reported before Cisco completed the acquisition so we don't know if it's propping up, not affecting or dragging down Cisco.
Splunk will actually save the company. Wall Street loves it and the stock has increased over 25% since. There are always a few hiccups in something like this but Chuck has shown he has ba--s made of concrete and can move Cisco forward. He has been the best CEO in our history. I hear big bonuses are coming for us all after Splunk starts taking off!
Investing 28B in an AI acquisition could have meant a whole lot different.