Cisco Stock Plunges 12% After Memory Prices Pressure Margins

Cisco shares fell 12% on Thursday after the company issued lukewarm guidance, citing memory prices as a key factor in its profit margins. This decline marks the worst day for Cisco stock since 2022.

The company's guidance for the current quarter was below expectations, with revenue growth expected to be around 4-6%. This is a significant decrease from the 10-12% growth that analysts had predicted.

Cisco's stock price has been under pressure in recent months due to various factors, including the decline in memory prices and increased competition in the networking equipment market. The company's revenue has also been impacted by the ongoing semiconductor shortage.

Despite the decline in its stock price, Cisco remains a dominant player in the networking equipment market. The company's products are used by many major corporations and governments around the world.

The decline in Cisco's stock price has had a ripple effect on the broader technology sector, with many other tech stocks also experiencing a decline in value.

The impact of memory prices on Cisco's profit margins is a significant concern for investors. The company's reliance on memory prices has been a major factor in its revenue growth in recent years.

Cisco's guidance for the current quarter is below expectations, and the company's stock price has fallen as a result. This decline is a significant concern for investors and may have a negative impact on the broader technology sector.

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[4] Cisco stock has worst day since 2022 as memory prices pressure margins