Cisco (CSCO) stock is one of the top ETFs on Yahoo Finance right now, being smoked up nearly 4% in pre-market trading.
A move down makes perfect sense.
The company said it's everything an investor doesn't want to hear from the tech giant on its earnings day: inventory corrections, lower demand, an uncertain outlook, and worse-than-expected guidance. I could go on, but why?
Wall Street is letting Cisco executives have it this morning in the wake of another clue. Most vocal of the group: Jefferies analyst George Nutter.
“We don't really buy their comments about the softer macro environment also impacting the business. We also have ongoing market share concerns,” Nutter said in a client note. The address in that memo: The second trip is through inventory correction recognition.
Oh.
Saving blessing for Cisco bulls: The company's $28 billion Splunk deal will likely close early, by the end of the second quarter, execs said in earnings last night. Once the business is in house for Cisco, the company's CFO will likely recast guidance higher to take into account Splunk's earnings strength.
