Cisco's Demand "Stabilization"

Plus, AST SpaceMobile joins AT&T.

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Today is Thursday, May 16, 2024.

The Early Bird Index today is 72.30.

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Cisco's Demand "Stabilization"

Cisco Systems (Nasdaq: CSCO) presented strong financial results on Wednesday, causing the stock to jump 4.93% in after-hours trading.

Financials: Cisco reported earnings of 88 cents per share in the past quarter and revenue of $12.7 billion; both were better than expected.

Details: Half of Cisco’s subscription revenue came from the data tool Splunk, which Cisco acquired in the quarter.

Quote: “Customers are consuming the equipment shipped over the last few quarters in line with our expectations and we are seeing stabilization of demand as a result.” - Scott Herren, CFO of Cisco. 

Outlook: Cisco expects revenue to be over $13.4 billion in the current quarter, which is also better than expected.

Final Thoughts: Cisco was down 1.66% this year. These results should turn things around.


Notable Earnings Today: Walmart (NYSE: WMT), Applied Materials (Nasdaq: AMAT), Take-Two Interactive Software (Nasdaq: TTWO), Under Armour (NYSE: UAA), Doximity (NYSE: DOCS), Deere (NYSE: DE), Copart (Nasdaq: CPRT), NICE (Nasdaq: NICE), Lightspeed (NYSE: LSPD), DXC Technology (NYSE: DXC), Advanced Drainage Systems (NYSE: WMS), Canada Goose (NYSE: GOOS), Flowers Foods (NYSE: FLO), Adecoagro (NYSE: AGRO), Baidu (Nasdaq: BIDU), (BCBA: DESP), Global Ship Lease (NYSE: GSL), Globant (NYSE: GLOB), (Nasdaq: JD), Okeanis Eco Tankers (NYSE: ECO).

Notable IPOs Today: N/A.

Notable Equity Crowdfunding Campaigns Ending Today: Flying Leap Vineyards & Distillery (Mainvest), Anesu Restorative Care (SMBX).

Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), Philadelphia Fed Manufacturing Index (8:30 a.m. ET), Housing Starts (8:30 a.m. ET), Building Permits (8:30 a.m. ET), Import Price Index (8:30 a.m. ET), Export Price Index (8:30 a.m. ET), Industrial Production (9:15 a.m. ET), Fed's Balance Sheet (4:30 p.m. ET).

AST SpaceMobile Joins AT&T

Despite reporting lower sales for the quarter on Wednesday, satellite designer AST SpaceMobile (Nasdaq: ASTS) surged by 41% in after-hours trading due to a new partnership.

Financials: AST SpaceMobile reported a loss of 16 cents per share in the past quarter, which was better than expected. But revenue only reached $500,000 (yes, you’re reading that correctly), which was a big miss.

Powering the Story: The stock soared Wednesday after AST SpaceMobile announced an agreement with AT&T (NYSE: T) to provide a space-based broadband network direct to everyday cell phones. The agreement will continue until at least 2030.

Stock Price: This news is huge for AST SpaceMobile. The stock was down 50% this year before this announcement.

Final Thoughts: As a result of this partnership, AT&T will go up against Elon Musk's Starlink, which offers a similar service.

Solana’s Double Dose of Good News

The cryptocurrency Solana jumped 13% on Wednesday thanks to Robinhood (Nasdaq: HOOD) announcing an expansion of Solana services on its platform and positive inflation news.

Final Thoughts: Solana is now up over 62% 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.