Cisco shares dropped this morning, after a disappointing revenue forecast was released from the company last night. John Chambers, Cisco’s chief executive, heeded of uncertainty around the economy, outlaying revenue that missed Wall Street’s targets for the quarter. Cisco’s stock, in turn, was off by 7.3 percent at $21.99.
Cisco’s stock tumble is weighing on the technology sector as a whole, after the Federal Reserve brought a dreary outlook for the U.S. market as a whole. S&P 500 futures SPc1 dropped 6.3 points, well below fair value, indicating troubles for current and future economic trends.
The sharp decline took its toll on all three major indexes, making this their worst percentage drop since July 16. 2010. Several investors have become leery of the market, as U.S. jobless claims are on the rise. The downturn is disheartening, given the gains several sectors, including technology, have made in the past year.
For Cisco, the stock drops casts a shadow over the tech industry, and will exemplify the uphill battle that many others in this sector will face in the coming months. Cisco’s fending off a growing front in hardware, software and cloud initiatives for the enterprise, with no help from other scandals in the sector. With the disrupt of last night’s dismal reports, Cisco customers also worry about the health of the industry overall.
