Cisco's AI Era Demand Revealed

And, AST SpaceMobile's mixed results.

August 15, 2024

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Today is Thursday, August 15, 2024.

The Early Bird Index today is 68.99.

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Cisco's AI Era Demand Revealed

Technology giant Cisco Systems (Nasdaq: CSCO) jumped 5.74% in after-hours trading on Wednesday after disclosing strong financial earnings.

Financials: Cisco reported earnings of 87 cents per share in the past quarter and revenue of $13.6 billion; both were better than expected.

Quote: “We saw steady customer demand with order growth across the business as customers rely on Cisco to connect and protect all aspects of their organizations in the era of AI.” - Cisco CEO Chuck Robbins.

Early Bird’s Nest Egg Gains: The era of AI presents significant opportunities for Cisco, positioning the company as a key player in enabling and securing AI-driven technologies.

  • The company is leveraging AI to enhance its security offerings, including autonomous network segmentation and distributed exploit protection.

  • The company announced a new $1 billion global investment fund to expand and develop secure, reliable AI solutions.

  • Cisco made strategic investments in companies like Cohere, Mistral AI, and Scale AI to advance critical areas of AI development.

Also: The company announced a 7% layoff on Thursday.

Final Thoughts: Despite the AI demand, Cisco’s stock is down for the year.

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Notables

Notable Earnings Today: Walmart (WMT), Alibaba Group Holding (BABA), Applied Materials (AMAT), Deere & Co. (DE), JD.com (Nasdaq: JD), Tapestry (NYSE: TPR), H & R Block (HRB), Grab Holdings (GRAB), Coherent (COHR), Amcor (AMCR), NICE (NICE), Applied Industrial (AIT), Alvotech (Nasdaq: ALVO), Despegar (BCBA: DESP), Gambling.com Group (Nasdaq: GAMB), Globant (NYSE: GLOB), Golar LNG (Nasdaq: GLNG), Renew Energy Global (RNW), Sigma Lithium (Nasdaq: SGML), SpartanNash (Nasdaq: SPTN), Sow Good (Nasdaq: SOWG).

Notable IPOs Today: Flag Ship Acquisition Corp. Ordinary Shares (Nasdaq: FSHP), TappAlpha SPY Growth & Daily Income ETF (Nasdaq: TSPY).

Notable Equity Crowdfunding Campaigns Ending Today: The Firing Squad (Wefunder), Evoke Chi (Honeycomb), Motor City Popcorn (Honeycomb), Tessier Winery (SMBX), Samreens Vanity (Wefunder).

Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), Retail Sales / Core Retail Sales (8:30 a.m. ET), Philadelphia Fed Manufacturing Index (8:30 a.m. ET), Philly Fed Employment (8:30 a.m.), NY Empire State Manufacturing Index (8:30 a.m. ET), Export Price Index (8:30 a.m. ET), Import Price Index (8:30 a.m. ET), Industrial Production (9:15 a.m. ET), Business Inventories (10:00 a.m. ET), TIC Net Long-Term Transactions (4:00 p.m. ET), Fed's Balance Sheet (4:30 p.m. ET).

AST SpaceMobile’s Mixed Results

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Shares of AST SpaceMobile slipped by 0.29% in after-hours trading on Wednesday after the satellite company posted mixed financial earnings results.

Financials: AST SpaceMobile reported a loss of 51 cents per share in the past quarter, which was lower than expected. But revenue reached $900,000, which was better than expected.

Background: The company has been growing through new partnerships with communications providers. It is up over 300% (wow!) this year.

Final Thoughts: AST SpaceMobile has an upcoming orbital launch that will be critical for the company’s growth.

Toncoin Jumps on Telegram Anniversary

Toncoin, the cryptocurrency originally developed by Telegram, jumped 7% on Wednesday, the 11th anniversary of Telegram.

Final Thoughts: Toncoin is up over 300% this year.

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The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.