Important note

This AI stock analysis for Cisco Systems is not up to date. Creating and accessing our AI stock Analysis (powered by our data and Chat GPT) is only available for our premium users. Sign up to get access today!

Cisco Systems - AI Stock Analysis

Analysis generated May 24, 2024

Cisco Systems, Inc. is a global technology conglomerate specializing in networking hardware, telecommunications equipment, and other high-technology services and products. The company is headquartered in San Jose, California, and it is well-known for its contributions to the evolution of the internet and networking technologies. Cisco consistently invests in new innovations and acquisitions to expand its market reach and maintain its leadership position.

Fundamental Analysis

The revenue for Cisco Systems in the last quarter was $12.4 billion. This figure represents a decrease of 2.48% compared to the previous quarter, which could signal a short-term concern. More concerning is the 14.66% year-over-year decline in revenue, indicating potential long-term challenges for the company.

Net income for the last quarter was $1.89 billion, reflecting a significant decrease of 28.40% compared to the quarter before. On a year-over-year basis, net income has dropped by 41.28%. These numbers are particularly important as they suggest decreased profitability, which could negatively affect investor confidence.

The earnings before interest, taxes, depreciation, and amortization (EBITDA) was $2.89 billion for the last quarter. This value shows a decrease of 13.68% compared to the previous quarter and a 30.15% decrease year-over-year. EBITDA is a vital metric as it provides insights into the company's operational efficiency and profitability.

The current price-to-earnings (P/E) ratio for Cisco Systems is 15.86. This ratio falls within a normal range, indicating that the stock is neither overvalued nor undervalued when compared to the general market.

Lastly, there have been several instances of company insiders selling their stock in recent months, which can be seen as a bearish signal. Insider selling could imply a lack of confidence in the company’s short-term prospects.

Technical Analysis

The current stock price is $46.42, representing a decrease of 3.99% from a month ago. Moreover, compared to a year ago, the stock price has seen a decrease of 2.38%, suggesting ongoing concerns for long-term investors.

The short-term moving average (SMA10) is currently 47.70, down from the previous SMA10 of 47.96. This suggests a potential downward trend in price movement, which aligns with the overall bearish trend.

The Relative Strength Index (RSI) is at 62, indicating a neutral condition. However, the downward trend and bearish signals indicate caution for potential investors.

Alternative Data Analysis

Cisco Systems has 483 open positions according to job board data, an increase of 16% over the last couple of months. This rise in job postings may signal the company’s efforts to grow and expand, potentially a healthy sign for future prospects.

Employee sentiment regarding business outlook remains neutral, indicating neither strong optimism nor significant concern among the workforce.

The company's website has seen an estimated 21 million visitors, though this number is down by 21% over the last couple of months, a worrisome metric indicating potential loss of customer interest.

Cisco Systems has approximately 17,000 daily downloads of its mobile apps with no meaningful growth or decline, suggesting stable user engagement.

Social media engagement shows Cisco Systems has 520,000 Instagram followers and 740,000 Twitter followers, with no meaningful changes in the metrics. This indicates a stable but stagnant level of customer engagement and interest.

AltIndex's AI score for Cisco Systems is 36, which rates as a sell signal combining fundamental, technical, and alternative data analysis insights.

Conclusion and Recommendation

Based on the comprehensive analysis of Cisco Systems, incorporating fundamental, technical, and alternative data insights, the outlook appears to be cautiously negative. The decrease in revenue, net income, and EBITDA presents significant concerns. The technical indicators align with a bearish trend, while alternative data points such as job postings and web traffic suggest mixed signals about the company's future.

Given the various bearish signals, including insider selling, declining stock prices, and negative AltIndex AI score, it's advisable for current and potential investors to exercise caution. The recommendation based on the available data is to consider selling or holding off on buying Cisco Systems stock until more positive indicators emerge.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.