Cisco Systems, Inc. Stock Price (CSCO)

What is Cisco stock?

Cisco stock refers to the publicly traded shares that belong to Cisco Systems, Inc. The company was founded in San Francisco (hence the abbreviated company name) in 1984 by husband and wife, Leonard Bosack and Sandy Lerner, both computer scientists.

Cisco's first product was the AGS router, developed by Bosack and colleague Kirk Lougheed, while employed at Stanford University. Today, Cisco provides a range of computer and network-based products, services and solutions, including industrial IOT (Internet of Things) management and cloud software.

Cisco stock became available to the public after its IPO (initial public offering) in February 1990 at a value of $0.080. The company enjoyed significant growth throughout the dotcom bubble. It reached a peak of $79.56 in 2000 and overtook Microsoft to be the most valuable company in the world, albeit for a brief halcyon period.

After the dotcom bubble burst, Cisco Systems, Inc suffered a huge collapse with its market capitalisation dropping from over $500 billion to $51 billion. However, today the company remains a leading competitor in the tech market, producing revenue of around $50 billion each year with a net income of over $10 billion. Its focus on wireless technology, security and ethernet switches has gained Cisco an outstanding worldwide reputation.

What is the past performance of Cisco stock?

As mentioned, from the late 1990s to 2000, Cisco Systems stock performed well up until the dotcom bubble peak. Early 2001 saw a significant drop off and the Cisco stock price reached a low of $9.46 in October 2002. Since then, the overall stock price has fluctuated.

The value continued to fluctuate between the $10 and $33 mark before rising steadily from late 2017. Cisco Systems stock suffered in late 2019 and 2020 due to the trade war with China and, of course, the pandemic, but gained traction between 2021 and 2022.

In 2022 Cisco Systems, Inc surpassed results expectations and the stock value ranged between $50 and $60. 2023 has seen few fluctuations within the Cisco stock price, with a high of $57.84 reached in September.

In September 2023, Cisco Systems, Inc announced it was buying the software company, Splunk, for $28 billion, resulting in a 4% loss in Cisco's share value.

What affects the price of Cisco stock?

Many factors can influence Cisco Systems stock price, including supply and demand and market sentiment. Other variables include:

• Company reports and announcements: Job cuts, revenue losses or acquisitions typically cause a decrease in the Cisco Systems stock price, particularly in the short term. Better than expected results and expansion generally have the opposite effect.
• Industry growth and advancements: The ever-changing landscape of the technology industry has a huge effect on the stock price of such companies. Innovations and greater reliance on aspects such as industrial communications, AI and cloud-based computing can assist a rise in Cisco Systems, Inc stock price. However, as with the crash of the dotcom bubble, scattergun investment in startups and young internet-based companies can have a detrimental effect across the technology industry.
• Economic conditions: Wider economic factors also play a part in the share price of Cisco. If inflation and interest rates are hiked, company profits can decrease which can have a knock-on effect on the value of stocks.

Trading Cisco Systems stock

You can trade Cisco Systems stock with Tradu via two methods, contracts for difference (CFDs). These are both financial derivatives that don't require you to own the underlying asset. You're also able to speculate on bull and bear markets, using fundamental and technical analysis to predict the direction in which the market will move.

You can use leverage with these methods, increasing your market exposure and potential profit with just a small deposit. However, it's a good idea to implement risk-management tools to limit any losses.

Investing in Cisco stock

You have the option of investing in Cisco Systems by buying stock directly. This means you'll own the stock which you can then hold or sell.

This method is typically used as a long-term way to trade stock and usually offers more stability than short-term trading. However, you can only profit from bull markets, and you can't speculate on value as you can when using financial derivatives.

There is also no way to use leverage when investing in Cisco Systems, Inc stock directly. While this takes away the risk associated with leverage, it also reduces your profit opportunities.

Pros and cons of trading Cisco stock

Whether trading in Cisco Systems, Inc stock is right for you depends on a variety of factors. It's important to be aware of the pros and cons before making your decision.

Pros of trading Cisco Systems stock

• Trade both market directions: If trading using financial derivatives you don't need to wait for a bull market to take advantage of an opportunity. You can speculate on price movements in the opposite direction and still make a profit as you won’t own the stock.
• Exposure to a world-leading technology company: Cisco Systems, Inc is a well-established, global leader in the networking and tech communications industry. Trading its stock provides opportunities to make a potential profit based on its performance.
• Leverage: Trade using leverage and you can gain exposure to a larger market share with a smaller deposit, which, in turn, can increase your profits should the trade go in your favour.

Cons of trading Cisco Systems stock

• Leverage: While it can be positive and allow traders to make greater profits, leverage doesn’t come without risk as it can also magnify any losses.
• Unpredictability: Cisco Systems, Inc might be a renowned company with a multinational presence, but the market can still suffer from volatility and fluctuations that are difficult, if not often impossible, to predict. It's important to remember that volatility can strike any industry, so be aware of factors that can influence your chosen market.

How to trade Cisco stock with Tradu

1. Open a Tradu account: Sign up online to gain access to multiple trading opportunities.
2. Develop a strategy: Leverage our insights and resources to create a trading plan.
3. Carry out analysis: Analyse with the help of our advanced technical indicators and live Cisco stock price
4. Place your trade: Identify the best opportunities and place your trade directly from your Tradu account.
5. Diversify: Utilise our resources to broaden your knowledge of other markets. Enhance your portfolio by trading indices, crypto, commodities and forex.