CSCO - Cisco Systems, Inc.
Chart Events
Head and Shoulders Bottom
Performance Outlook
- Short Term2W - 6W
- Mid Term6W - 9M
- Long Term9M+
| Previous Close | 41.74 |
| Open | 42.09 |
| Bid | 41.40 x 2900 |
| Ask | 41.40 x 3100 |
| Day's Range | 40.85 - 42.20 |
| 52 Week Range | 32.40 - 58.26 |
| Volume | 26,646,991 |
| Avg. Volume | 31,841,687 |
| Market Cap | 174.724B |
| Beta (5Y Monthly) | 1.01 |
| PE Ratio (TTM) | 16.07 |
| EPS (TTM) | 2.56 |
| Earnings Date | May 12, 2020 |
| Forward Dividend & Yield | 1.44 (3.45%) |
| Ex-Dividend Date | Apr 01, 2020 |
| 1y Target Est | 47.05 |
Fair Value
Related Research
- MarketWatch
The CEO who built Cisco into a powerhouse has a sobering pandemic prognosis: At least nine months of economic pain
The legendary tech executive-turned-venture capitalist predicts the health and economic crisis will take three to five quarters to run its course, and any economic uptick won’t occur until at least late fall. A full recovery would likely happen until early 2021, Chambers warned.
- Zacks
Cisco Systems (CSCO) Stock Sinks As Market Gains: What You Should Know
Cisco Systems (CSCO) closed the most recent trading day at $41.20, moving -1.29% from the previous trading session.
- American City Business Journals
Cisco-backed data management unicorn more than doubles valuation in $250M funding
The downtown San Jose-based company's round is the latest indication that venture firms are willing to continue open their wallets wide to support late-stage businesses during the pandemic.
- Bloomberg
Cisco CEO Tells Staff Jobs Are Safe, Urges Others to Avoid Cuts
(Bloomberg) -- Cisco Systems Inc. Chief Executive Officer Chuck Robbins said he’s told staff not to worry about losing their jobs and urged other companies to follow his example when possible.“We’re actively involved in the community trying to help people who’ve been impacted by this, why would we contribute to the problem?” Robbins said in an interview. “There are companies whose revenue has gone to zero who have no option. To me it’s just silly for those of us who have the financial wherewithal to absorb this, for us to add to the problem. It’s illogical.” Cisco, based in San Jose, California, has about 75,000 employees.Robbins said Cisco is focused on the near-term response to Covid-19 and has little visibility into how the economic downturn will affect its business farther out in the future. For now, the largest maker of hardware that handles internet traffic is rushing to meet demand for its Webex conferencing business and help customers expand their online capabilities, he said.Like other hardware makers, Cisco has seen increased demand from corporate customers that are experiencing a surge of online activity or trying to support more employees working from home. It’s too early to say whether that’s a short-term bump or a more permanent shift in the way companies do business, he said.IT Support Staff Go From Ignored to Indispensable: Fully Charged“Customers got to the point they’re at now by using everything they could to get up and running,” he said. “There’s a thesis that says some of our customers are going to go through an upgrade cycle. But we don’t know.”Some industries such as health care, higher education and financial services may be among those that build up their infrastructure to adjust to these changes more permanently, he said.Robbins said he’s spending a lot of his time on efforts by Cisco employees to help local communities. The company has implemented programs such as removing conferencing hardware from offices that are empty and sending it to hospitals. They’re using such gear to implement new procedures like remote patient check-ins, he said.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
- Zacks
Cisco (CSCO) to Buy Fluidmesh Networks to Boost IoT Portfolio
Cisco's (CSCO) acquisition of Fluidmesh Networks is expected to strengthen its industrial IoT offerings, which bode well for its long-term prospects.
- American City Business Journals
Google expands North San Jose footprint with latest property purchase
Alphabet Inc.-owned Google has completed a purchase-and-sale agreement that it filed in December 2019 to acquire another building in North San Jose, where it is assembling one of the largest corporate campuses in the city.
- Reuters
Taiwan tells agencies not to use Zoom on security grounds
Taiwan's cabinet has told government agencies to stop using Zoom Video Communications Inc's conferencing app, the latest blow to the company as it battles criticism of its booming platform over privacy and security. Zoom's daily users ballooned to more than 200 million in March, as coronavirus-induced shutdowns forced employees to work from home and schools switched to the company's free app for conducting and coordinating online classes. If government agencies must hold video conferencing, they "should not use products with security concerns, like Zoom", Taiwan's cabinet said in a statement on Tuesday.
- American City Business Journals
Cisco acquires small wireless tech company Fluidmesh Networks
Cisco is acquiring Fluidmesh Networks, a wireless technology company that serves public transit, mining and ports.
- Zacks
Cisco (CSCO) Webex Sees User Growth Amid Coronavirus Crisis
Cisco's (CSCO) Webex witnesses surge in users due to enhanced features and capabilities amid global pandemic.
- Bloomberg
Trump Risks U.S. Jobs While Saving Apple’s at Austin Factory
(Bloomberg) -- When Donald Trump toured an Austin, Texas, factory in November alongside Apple Inc. Chief Executive Officer Tim Cook, the president promoted the event as a celebration of U.S. manufacturing and the return of good-paying jobs to the country.The Apple CEO had successfully made his case to the administration that some components for his company’s products should be excluded from Trump’s China tariffs in exchange for keeping production in the U.S.“Today, I opened a major Apple Manufacturing plant in Texas that will bring high-paying jobs back to America,” Trump tweeted on Nov. 20.But the facility Trump visited is owned and operated by contract manufacturer Flex Ltd. and has been open for 30 years. For decades, it has been producing various devices for many companies including Cisco Systems Inc. Apple has been at the Flex plant since 2013.Computer Parts“He doesn’t have to worry about tariffs,” Trump said of Cook during the Nov. 20 factory tour. “Because when you build in the United States, you don’t have to worry about tariffs.”Two months earlier, the iPhone maker was exempted from tariffs levied on components it imports from China that are used in the Mac Pro desktop put together at the Flex plant. The removal of a 25% surcharge on items like power supplies and printed circuit boards that house the main components of the computer lowered Apple’s costs and, according to Cook, was the reason why the Cupertino, California-based company continued its manufacturing at the Austin factory.But other companies, like San Jose, California-based Cisco, didn’t receive the same treatment. Now jobs related to the manufacture of its products are at risk.In July 2019, Cisco asked the government to exempt the company’s power supplies for U.S.-made servers and switches from the same 25% tariff. Cisco said neither this China-made product nor a comparable one is available in the U.S. or from sources in third countries.Tariff ExemptionsCisco, like many other U.S. companies, was making the same plea to the Trump administration as Apple had: The exemptions were necessary to save good-paying American jobs.After months of being stuck in the process, Cisco was told March 5 that its application for the tariff exemption was denied.“After careful consideration, your request was denied because the request concerns a product strategically important or related to ‘Made in China 2025’ or other Chinese industrial programs,” Joseph Barloon, general counsel for the Office of U.S. Trade Representative, wrote in the denial notice.The applications for an exemption from Apple and Cisco were strikingly similar, particularly when it came to the question of whether their products helped China expand its industrial might.Power Supply“The subject power supplies are not strategically important or related to ‘Made in China 2025’ or any other Chinese industrial policy,” Cisco wrote. “The manufacture of these products in China is unrelated to China’s efforts to develop indigenous, advanced Information and Communications Technology products.”Apple used nearly identical language, saying: “This product is a component of a consumer electronic device. It is not strategically important or related to ‘Made in China 2025’ or other Chinese industrial programs.”Indeed, the power-supply boxes imported from China don’t require cutting-edge technological know-how. They are mostly made up of large spools of copper wire, capacitors and other basic wiring. They haven’t been made in the U.S. for years and don’t require highly paid skilled labor.Apple’s application to get a tariff exclusion was approved in September 2019.Tariff ReliefA USTR spokesman didn’t respond to a request for comment when asked why Apple’s power supply unit doesn’t constitute a product that’s strategically important to China’s industrial programs if an almost identical one from Cisco does.Cisco representatives specifically told USTR and others in the administration while the applications were pending that jobs were at risk, according to sources familiar with the process who asked not to be identified discussing private talks.In a statement after the decision, Cisco said the exemptions it sought “would support the competitiveness of this domestic manufacturing.”The company said it would continue to work with the trade representative’s office for tariff relief on other items, including “for communications equipment that we believe are vital to support the medical response to the coronavirus.”USTR doesn’t make public the reasons why it approves a company’s exemption requests. The business community writ large has complained about the lack of visibility into why certain companies get what appears to be preferential treatment over others.San Jose, California-based Flex, which works for both companies, said in a statement that “securing waivers for tax exemptions is an individualized process based on each customer situation” and declined to identify other customers that use the Austin plant. “Flex’s global footprint provides our customers with options for manufacturing locations, however, we also work closely to help our customers secure tariff exemptions based on their needs.”A group of Texas lawmakers in a letter to trade chief Robert Lighthizer last year underscored that jobs are on the line in Cisco’s case. “Cisco’s operations in Texas directly support more than 1,150 jobs in our state and indirectly support thousands of related jobs in logistics, warehousing, distribution and transportation,” the lawmakers said in their Sept. 13 letter.The decision by the trade office means it’s now a lot cheaper for Cisco to put together its servers, switches and routers in Flex plants in Mexico and export the finished device tariff-free to the U.S. The company declined to say what actions it would take regarding jobs or manufacturing in light of the denial of tariff exemption.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
- Investing.com
Cisco Stock Rises 4%
Investing.com - Cisco (NASDAQ:CSCO) Stock rose by 4.02% to trade at $40.65 by 11:28 (15:28 GMT) on Monday on the NASDAQ exchange.
- Zacks
Cisco Systems (CSCO) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Cisco Systems (CSCO) closed at $39.06, marking a -1.86% move from the previous day.
- Zacks
ETFs to Gain on Cloud Computing Growth Amid Coronavirus Crisis
Cloud computing comes to the rescue as countries practice social distancing, making people work remotely to contain the coronavirus outbreak.
- InvestorPlace
Cisco Stock Is One of the Better Bets in a Troubled Market
At time of writing, global coronavirus cases are nearing the one million mark, with the U.S. leading the number of cases by a country mile. Given this dubious honor, it's no surprise that the markets have taken down even stable companies like Cisco Systems (NASDAQ:CSCO). However, because of its long-term potential, many are taking advantage of the discount in Cisco stock.Source: Sundry Photography / Shutterstock.com In my opinion, it's not an unreasonable bet. Fundamentally, CSCO features a solid balance sheet. Additionally, its three-year revenue growth rate is above average for its industry, while featuring very strong profitability margins. Better yet, Cisco stock entitles you to a generous dividend, which can help mitigate downside while giving you passive income for your troubles.Nevertheless, investors should be careful about the evolving and harsh realities that come from a health crisis transitioning to an economic one.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Telecom Stocks That Are Worth a Close Look In shocking news, during a one-week period, more than three million Americans filed for unemployment benefits. For the latest reported week, economists estimate that, at minimum, we could see 3.5 million workers join their ranks. However, according to USA Today, other sources have much higher forecasts:…Nomura forecasts 4.1 million; Morgan Stanley, 4.5 million; and Bank of America, 5.5 million. Such first-time jobless claims represent the best measure of layoffs across the country.The numbers could mark just the initial wave of a punishing couple of months."We could see unprecedented job loss in the April jobs report in the tens of millions, with the unemployment rate (now a 50-year low of 3.5%) reaching double digits," Bank of America said in a research note.No matter what, Cisco stock will encounter at least some turbulence ahead. Organic Marketing for Cisco StockDespite the obvious headwinds - and many understated ones - CSCO shares have grown increasingly compelling to contrarians. I don't think it's just the discounted price that's driving interest. Rather, the underlying company has ample marketing opportunities. Moreover, management is taking advantage of them.Primarily, the pandemic is a chance for Cisco to market its broad cybersecurity services portfolio. As you know, cybercriminals have come out in full force during this crisis. Prominently, many crooks have set up fake websites to "sell" N95 face masks. Or in another bizarre example, conspiracy theorist Alex Jones peddled fake coronavirus cures before getting shut down.Of course, the main problem is that cybercriminals are advantaging the emotionally heightened state of our country to dupe people out of their valuable assets. In this digital world, it's not always cash that's most desirable. Instead, unauthorized access to privileged information is often well worth its weight in gold.Frankly, what better way to gain that access than to manipulate someone's emotions?Adding to this problem, millions of workers find themselves operating remotely. While great for national health, it's unfortunately creating a data goldmine for cybercriminals. To counter this problem, Cisco is offering for a limited time its cybersecurity services free of charge, particularly for platforms involving remote workers.In the early stage, this initiative probably won't benefit Cisco stock. After all, the underlying company is giving something away for free. But in the long run, it's a perfect marketing opportunity to demonstrate the necessity of strong, reliable network defense mechanisms.Invariably, cybercriminals will wreak havoc on companies with lesser, shall we say Cisco-less platforms. Thus, this is an easy juxtaposition to sell corporate clients, eventually boosting the profile of Cisco stock. Advantaging a Virtual NormalIn an interview with CNBC, Cisco CEO Chuck Robbins brought up interesting statistics regarding the jump in remote conferencing. Robbins stated:In the first 11 business days of March, we've had 5.5 billion meeting minutes…Yesterday we held 3.2 million meetings globally on Webex, and that doesn't include one on ones. Those are multi-individual meetings.Naturally, over the last several weeks, interest in so-called work-from-home stocks - Slack Technologies (NYSE:WORK), Zoom Video Communications (NASDAQ:ZM) and Dynatrace (NYSE:DT) - have soared. Currently, we're in the low-hanging fruit phase of sector demand; that is, just existing is winning.But as we move forward, corporate clients will judge work-from-home platforms on several criteria, including reliability, usability, and safety. Here, CSCO has a great opportunity to market itself as a comprehensive solution for all communication needs.Granted, it's not a perfect bet because we're hardly in a perfect environment. That said, if you're going to buy some discounted shares, Cisco stock offers a very solid look.A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * This Stock Picker's Latest Video Just Went Viral * The 1 Stock All Retirees Must Own The post Cisco Stock Is One of the Better Bets in a Troubled Market appeared first on InvestorPlace.
- Reuters
Cisco's Webex draws record 324 million users in March
Webex and rival meeting platforms from Zoom and Microsoft Corp's Teams are being used worldwide to host everything from virtual classrooms and business meetings to church services, as people stay at home to restrict the spread of the pandemic. It was, however, not clear if the number was comparable with Cisco's due to the different ways the companies calculate meeting attendees.
- InvestorPlace
7 Tech Stocks to Buy For an Interconnected World
Amidst growing global tumult, volatility has had the stock market swinging from extreme bearishness to brief moments of bullishness. And although the general direction is down, sticking to the game plan will pay off in the long run. Investors ought to stake claims in ongoing trends now to maximize returns over the next few years.If anything, a market correction, or even a crash, can create better prices for investors willing to buy and hold. In the technology sector, the increasingly connected world of smart devices (speakers, thermostats and doorbells, to name just a few) will result in strong sales growth for these devices and the systems that power them. While consumers are familiar with these devices as ways to make life more convenient, turning on lights or opening garages with their smartphones, the business applications should appeal to investors.Of course, this connected world needs communication infrastructure to support 5G networks and the Internet of Things (IoT). So, should the global economy slow considerably in the short-term, the demand for connectivity will not change much. For example, the sudden need to stay at home to work will increase the demand for connectivity solutions.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut these developments in the telecom sector are only one aspect of the increasingly connected world.Robert Siegel, lecturer in management at Stanford Graduate School of Business, thinks every industry will be affected by the proliferation of smart devices that can communicate with each other via the internet:"Some obvious ones include manufacturing, mobility, and healthcare. The ability to make things with speed and scale will drive large scale but simultaneously customized manufacturing of items ranging from clothing to retail to food (yes, food!). Cars will become moving collections of sensors which will impact traffic, entertainment (in and out of the vehicle) and hospitality." * 7 Small-Cap Stocks That Might Not Survive When it comes to the world of smart devices investors should invest not only in the "usual suspects" (telecom and tech stocks), but in companies that offer solutions in the automotive or retail space as well. Here are seven stocks investors should consider. Tech Stocks to Buy: Cisco Systems (CSCO)Source: Valeriya Zankovych / Shutterstock.com Cisco Systems (NASDAQ:CSCO) directly benefits from the surge of people working from home in order to minimize the spread of the coronavirus. Cisco CEO Chuck Robbins said that user activity for its video conference platform, WebEx, surged to 5.5 billion meeting minutes in just the first 11 days of March.In the cloud space, Cisco has partnered with Amazon.com (NASDAQ:AMZN) and Microsoft (NASDAQ:MSFT) to support AWS and Azure, respectively. Its software-defined network (SDN) WAN connectivity gives those platforms very tight security, as well as a way to analyze the entire network of devices. On a conference call, Cisco said that its SDN provides data on "hundreds or thousands [of] different types of network devices." That ensures the customer gets the most data out of its infrastructure.Cisco has expertise in building large-scale networks that are highly available (e.g. reliable) and secure. Customers get better tools to manage the network and to ensure its security. In effect, Cisco enables users to connect quickly to an Azure or AWS platform.Critically, Cisco has a security stack in place to handle a higher volume of users. So the end-user on, say, Office 365, should still have a good experience despite increased traffic.That's great news for Cisco. In a 5-year discounted cash flow growth exit model, assume revenue growing a modest 1.2% compounded annually. With the following metrics below, Cisco stock is worth over $50:Metrics Range Conclusion Discount Rate 9.5% - 8.5% 9.00% Perpetuity Growth Rate 2.0% - 3.0% 2.50% Fair Value $45.64 - $59.05 $51.32 Data courtesy of finbox.io AT&T (T)Source: Jonathan Weiss / Shutterstock.com AT&T (NYSE:T) is one of the best plays in the telecom sector right now, even if the company recently cancelled an accelerated share buyback to preserve cash on hand.The company said that it decided to pause its $4 billion stock buyback "to maintain flexibility and focus on continued investment in serving our customers, taking care of our employees and enhancing our network, including nationwide 5G. These continued investments will help ensure the Company is well-positioned when the pandemic passes and economies begin to recover."Earlier in March 2020, the company announced that 5G is now live in 22 more markets across the U.S. Since some of the latest smartphones, like Samsung's Galaxy S20, support 5G, customers will begin to utilize the faster low-band spectrum. 5G offers faster speeds over broader distances than the older 4G+ network. And since the demand for better network performance keeps growing, AT&T is in a good position to build its subscriber base at the expense of its competitors.AT&T's Business Solutions division sells wireless products, IoT, and connected devices through FirstNet. It is deploying high-speed nationwide wireless broadband to serve public safety. The reliability and speed of its network will serve to improve AT&T's reputation. Consumer and business customers will switch to AT&T's network if they want a better network and more services. AT&T said its Business Wireline group contributes a lot to its EBITDA. * 7 Small-Cap Stocks That Might Not Survive Analysts currently have an average price target of $42.10 on AT&T stock (per Tipranks). Nokia (NOK)Source: RistoH / Shutterstock.com Nokia (NYSE:NOK) is a leading supplier of 5G networking solutions. In early March, the company announced a collaboration with Intel (NASDAQ:INTC). Nokia will ship variants of its 5G AirScale radio access solutions. This will embed Intel's Atom P5900 processor. So, the 5G radio will "combine compute, connectivity, and acceleration technologies." Because 5G supports billions of devices, the increase in volume and scale will need better technologies to back that demand.Nokia entered a partnership with Marvell (NASDAQ:MRVL) to develop 5G multi-Radio Access Technology (multi-RAT). This will combine Nokia's wireless technology with Marvell's multi-core ARM processor platforms. Nokia's ReefShark will benefit from lower power usage and smaller chip size.Nokia is progressing well in the 5G space. In Feb. 2020, the company completed a 5G core standalone network trial with KDDI, a leading telecoms company in Japan. So Nokia, through its 5G AirGile cloud-native core product, has the know-how to analyze 5G networks in a stand-alone service format.Assuming the following metrics in an earnings power value model, Nokia stock is worth $5.10:Metrics Range Conclusion Adjusted Earnings 952 M - 4.03 B 1.988 B Discount Rate 9.0% - 7.0% 8.00% Fair Value $2.39 - $11.31 $5.10 Data courtesy of finbox.io Ericsson (ERIC)Source: Shutterstock Just as Nokia reported a successful trial with KDDI, Ericsson (NASDAQ:ERIC) achieved cloud-native CI/CD (Continuous Integration/Continuous Delivery) pipeline delivery for KDDI's standalone 5G Core network.This will support the automatic deployment of new software and functions without disrupting the 5G core network. Ericsson has effectively automated the deployment process by taking out the need for staff involvement.The company further announced the production of its first 5G base station. The factory is located in Lewisville, Texas. And once it is operational later this year, the factory will supply all radio access components for a solution that 5G networks will use.In its fourth quarter, Ericsson management said it had nearly 80 commercial 5G agreements in place, with 24 5G networks already live. Customers are migrating to 5G and will need both operational support systems and cloud infrastructure as a by-product. So overall, gross margins held a steady 38.1%. The company's portfolio will benefit from the good momentum regardless of the current market conditions.Looking ahead, the shift from 4G to 5G is driving capital expenditure growth in the industry. Alongside that upgrade is data growth from users. Plus, the sudden shift in users needing to work remotely due to the COVID-19 lockdown also accelerated the upgrade timetable. * 7 Small-Cap Stocks That Might Not Survive ERIC stock has a fair value of $7.94, according to a quantitative research report by Stock Rover. NXP Semiconductor (NXPI)Source: Lukassek / Shutterstock.com NXP Semiconductor (NASDAQ:NXPI) beat consensus estimates yet again in the fourth quarter. The company benefited from strong demand in mobile, automotive, and industrial IoT markets. Revenue topped $2.3 billion, $30 million above company guidance.In the industrial IoT sector, NXP posted revenue falling 12% year-on-year due to the U.S./China trade worries. But looking ahead, revenue from industrial IoT will rise by 20%. Mobile will increase in the low double-digit percentage range.To bolster its Wi-Fi product, NXP acquired Marvell's (NASDAQ:MRVL) connectivity business. This will strengthen its automotive infotainment connectivity solution. Its industrial and IoT applications will also benefit from the Marvell acquisition. In the 2021-22 period, NXP expects improved traction for its ultra-band solution. So, with more IoT application use cases, expect a higher revenue range forecast.Management expects modest growth in the 5G space. On the conference call, CEO Rick Clemmer said that the company hasn't "seen a resumption of the 5G growth yet. And it looks like it'll still be a couple of quarters out before we'll see strong growth in 5G deployment. We clearly see that it's coming. Just don't see it in the near term." STMicroelectronics (STM)Source: Michael Vi / Shutterstock.com STMicroelectronics (NYSE:STM) has lost half its value on the stock market. The company said it will cut production by up to 50% due to the coronavirus outbreak in France. Yet if the global slowdown proves short-lived, STMicro should meet its full-year 2020 outlook. It commented on its conference call that product demand will grow because of trends in "smart mobility, power and energy applications, and IoT and 5G."STMicro set a $1.5 billion capital expenditure plan to support growth in those markets. Its eventual goal is $12 billion in revenue. If history is any indicator, this firm will exceed those targets. Last year, for example, demand in personal electronics such as smartphones and wearables, climbed in the latter half of 2019.This year, 5G infrastructure build-outs are growing. So, ST is in a good position to meet the rising demand in IoT and 5G. And as more smartphone makers refresh the models to the 5G standard, the average selling price increases. ST will also offer such features as wireless charging and Micro Electro Mechanical Systems sensors. * 7 Small-Cap Stocks That Might Not Survive On Wall Street, the average price target on STM stock is $28.98 (per Tipranks). Qualcomm (QCOM)Source: Xixi Fu / Shutterstock.com Qualcomm (NASDAQ:QCOM) is a Wall Street favorite, with a $94.67 price target. The smartphone chip processor and modem supplier said that demand in China already returned to normal levels. The company is at the forefront of the 4G to 5G transition. In anticipation of the explosive growth ahead, the company is maintaining a healthy level of operating expenditure levels. This will help it keep or improve its structure.In the long-term, investments in the business today will pay off tomorrow. With its radio frequency design wins and high-performance Snapdragon chip, investors should expect Qualcomm's operating margins to increase. The business is so healthy not just in China but overall. The company said on its Q! earnings call that "in terms of inventory on 5G, we're really at the front end. And we have increasing demand from our OEM base. And really, the challenge for us is how do we keep up with increasing demand, because it's an incredible opportunity for us to grow."Investors may forecast revenue growing by around 3% annually in a 10-year discounted cash flow revenue exit model. Also, assume the following metrics:Metrics Range Conclusion Discount Rate 10.0% - 9.0% 9.50% Terminal Revenue Multiple 3.4x - 4.4x 3.9x Fair Value $74.34 - 92.15 $82.92 Data courtesy of finbox.ioDisclosure: the author owns Nokia stock. More From InvestorPlace * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * This Stock Picker's Latest Video Just Went Viral * The 1 Stock All Retirees Must Own The post 7 Tech Stocks to Buy For an Interconnected World appeared first on InvestorPlace.
- Reuters
Yield-thirsty investors eye stock dividends as virus fears shrink bond payouts
Battered S&P 500 stocks may get fresh interest from investors turning to dividends in a world of shrinking bond yields. The dividend yield on the S&P 500 now exceeds the yield on the benchmark 10-year U.S. Treasury by its highest margin in nearly five decades after a flight to safe-haven assets compressed government bond yields to record lows. Wall Street's coronavirus sell-off has left the S&P 500 down 26% from its February record high, lifting its dividend yield to 2.46%, the highest since 2009, according to Refinitiv's Datastream.
- Yahoo Finance
'We are the last service to be turned off' amid the coronavirus: RingCentral CEO
RingCentral founder Vlad Shmunis details a big uptick in business as people work from home during the coronavirus in an interview with Yahoo Finance.
- MarketWatch
Cloud companies appear to be silver lining as coronavirus dampens IT spending
COVID-19 is already beginning to weigh on corporate IT security budgets, but as millions work from home, one survey is finding a spending shift to cloud providers and security and away from PCs and servers.
- TheStreet.com
Economy's a Leaky Ship: Cramer's 'Mad Money' Recap (Monday 4/1/20)
Investors can't fight this kind of selling, but they shouldn't give up. Jim Cramer's got a case for sitting tight. It will end.
- MarketWatch
Will companies in the Dow report earnings as usual despite COVID-19 disruptions, or delay them because they can?
Just because the Securities and Exchange Commission will allow companies to delay reporting earnings results, if needed, it doesn’t mean any of them will.
- MarketWatch
Zoom, Microsoft Teams usage are rocketing during coronavirus pandemic, new data show
New data points Monday bear out that digital tools like Zoom Video Communications Inc.’s teleconferencing software and Microsoft Corp.’s collaboration offerings are seeing spikes in usage as the COVID-19 pandemic keeps workers housebound.
- IPO-Edge.com
IPO Edge’s Jannarone: Beware Getting Burned by Zoom Stock Frenzy – TD Ameritrade TV
The coronavirus crisis has caused panicked investors to look everywhere for shelter, including extremely expensive stocks such as Zoom Video Communications, Inc. (ticker: ZM). But while there has been a surge in usage of the service, the stock could plummet as investors seek out companies with steady cash flow in months ahead. That's according to […]
- Zacks
Palo Alto to Fortify Security Offerings With CloudGenix Buyout
Palo Alto (PANW) to acquire CloudGenix for approximately $420 million in an effort to expand its cloud security offerings.
