August 19 2022: Reading into Cisco’s Quarter Shows Good Results but Signals of Risk

Cisco turned in good numbers, enough to kick their stock up the morning after their report. Look at the details, though, and Cisco didn’t achieve any breakthroughs or demonstrate any radical new technology options that might buoy their numbers in the future. Cisco has the best salesforce in the networking market, and they have account control over many buyers. They’re using that to suppress competitors’ ability to introduce radical new technology concepts to networking, concepts that would put Cisco at risk. Competitors will never be able to push back Cisco at the sales level, and so far they’re failing to use marketing to raise the new-technology bar. Until they do, Cisco is likely to continue to ride high.