Cisco Drops 9% and Holds the Dow Back While the Nasdaq Climbs. Common Denominator: Memory Chips.
Why are memory chip stocks soaring while Cisco sinks? Both moves trace back to the same shortage, just from opposite ends of the supply chain.
Overview
Record revenue, record earnings, $4 billion in AI orders, and the stock fell 9%. Cisco Systems (NASDAQ: CSCO) had quite a morning.
The result is a split morning session on Wall Street. The Nasdaq Composite (NASDAQINDEX: ^IXIC) index gained 0.53% as of 12:32 p.m. ET and the S&P 500 (SNPINDEX: ^GSPC) is up by 0.41%, while the Dow Jones Industrial Average (DJINDICES: ^DJI) is down 0.17%. All three looked much better two hours earlier, peaking around 10:30 a.m. ET with the Nasdaq flirting with a 1% jump.
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Originally published at www.fool.com.
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