The blue tsunami turned Csco red.
11 replies (most recent on top)
Looking past the AI hype, Cisco is bit plumbing.
Cisco's core customer, companies who are rapidly reducing headcount and downsizing office space, don't need more switchports.
Cisco's AI push is ironically reducing their customer's need for Cisco gear.
Cisco benefited very little from the initial AI bo-m compared to most other tech companies because no one ever saw them as a significant player.
I'm not this poster, but to put it in numbers, revenue (ttm) as of October 2023 was $58.03B which adjusted for inflation is (at least, the inflation calculator I use only goes to September 2026) $63.55B. Three years later Cisco posted revenue of $63.32B so it's fallen behind when adjusting for inflation.
Unfortunately they also brought in Splunk in 2024 with an additional $4B in revenue plus another eight other companies in the past three years so accounting for inflation Cisco has lost significant revenue over the past three years.
Any boost in Cisco share price was artificial and mostly due to AI hype.
Noting revenue is not the stock price, the stock went from under $50 a bit under three years ago to over $130 recently before the recent downfall.
Oh, and Cisco's outstanding share count has also gone down from 4.087B in October 2023 to 3.94B in July 2026 (the last data on the site I checked) or about a 3.6% drop.
Oh no! It's time for G2 to sell off his watch!
Cisco benefited very little from the initial AI bo-m compared to most other tech companies because no one ever saw them as a significant player. Any boost in Cisco share price was artificial and mostly due to AI hype. Leadership tried their hardest to convince investors that they were integral to sector growth. We all know that they aren't and investors know this too. In the end, Cisco never could really capitalize on this or any other tech industry booms. The stock will continue to settle back down where it belongs until the next tech innovation hype cycle where Cisco will once again try to associate themselves as industry players. It will be interesting to see how they explain this to investors during the earnings call next week since they told everyone that they are booked out with AI deals well into 2027. I bet they will walk it back a few paces.
Cisco hit a peak valuation around $550B in 2000 which would be almost double that in today's dollars which is almost 3 times it's current valuation today. A trailing P/E of over 31 suggests it's likely still overvalued. Markets get overly optimistic then overly pessimistic and if we're lucky the cycle repeats. Learn it. Understand it.
On the topic of data center build out and OP's comment about a "blue tsunami," according a Gallup poll 71% oppose having a data center built in their back yard compared to 53% opposing a nuclear reactor. You aren't getting those kinds of numbers without real support from the masses on the right.
If you didn’t think there was going to be a substantial correction in the market for tech stocks at some point, you’ve been living under a rock. We knew this was coming it was just a matter of when.
If tech companies didn’t operate by chasing hype quarter to quarter this wouldn’t be a big deal.
Sell some before this earnings. RSUs vest next week, great timing.
If AI doesn’t do it anymore Cisco still has the code refactoring left, that will take the stock to $150.
Tech is f'd until the AI bubble pops or AI regulation happens.
And besides AI & elections, the stock always goes down before the November RSU vesting anniversary....always.
GTFO TECH. Use your transferable skills, core abilities and talents across different jobs, industries, and life situations.
Tech is completely fu---d. Every single person in tech should start refreshing resumes ASAP