Cisco's Product Order Slowdown

Plus, Palo Alto Networks billings.

Today is Thursday, November 16, 2023.

The Early Bird Index today is 59.41.

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Cisco's Product Order Slowdown

Technology company Cisco (Nasdaq: CSCO) plunged 10.98% in after-hours trading on Wednesday after posting mixed financial results.

Financials: Cisco reported earnings of $1.11 per share in the past quarter and revenue of $14.6 billion; both were better than expected.

Powering the Story: Although revenue jumped 8% in the quarter, Cisco said that it “saw a slowdown of new product orders” due to customers focused on installing and implementing current products instead.

Outlook: Cisco only expects revenue in the current quarter to be between $12.6 billion to $12.8 billion, which is lower than estimates.

Final Thoughts: While other tech stocks are surging this year, Cisco was only up 11% before these results. It seems that there is lower demand in the enterprise tech market for new product orders.

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Notable Earnings Today: Walmart (NYSE: WMT), Alibaba Group Holding (NYSE: BABA), Applied Materials (Nasdaq: AMAT), Gap (NYSE: GPS), Ross Stores (Nasdaq: ROST), Macy's (NYSE: M), Williams-Sonoma (NYSE: WSM), Warner Music Group (Nasdaq: WMG), Berry Global (NYSE: BERY), Borr Drilling (NYSE: BORR), Brady (NYSE: BRC), BrightView (NYSE: BV), Dole (NYSE: DOLE), Post (NYSE: POST), Shoe Carnival (Nasdaq: SCVL), Stratasys (Nasdaq: SSYS), UGI Corp (NYSE: UGI), Beazer Homes (NYSE: BZH), Dolby Labs (NYSE: DLB), ESCO Technologies (NYSE: ESE), Bath & Body Works (NYSE: BBWI), ZTO Express (NTSE: ZTO), Hillenbrand (NYSE: HI), Arcos Dorados Holdings (NYSE: ARCO), NetEase Games (Nasdaq: NTES), American Software (Nasdaq: AMSWA), Globant (NYSE: GLOB), Woodward (Nasdaq: WWD).

Notable IPOs Today: Captivision Inc. Ordinary Shares (Nasdaq: CAPT).

Notable Equity Crowdfunding Campaigns Ending Today: Catailyst (Netcapital), VOLTEQ Equipment (Netcapital), Island Brands (StartEngine).

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

Palo Alto Networks Billings

Cybersecurity company Palo Alto Networks (Nasdaq: PANW) posted financial results on Wednesday and fell by 5.71% in after-hours trading due to issues with the billings guidance.

Financials: Palo Alto Networks reported earnings of $1.38 per share in the past quarter and revenue of $1.9 billion; both were better than expected.

Quote: “Our billings were impacted by the cost of money.” - CFO Dipak Golechha.

Outlook: Palo Alto Networks expects billings in the range of $10.7 billion to $10.8 billion for the full year, which was lower than anticipated.

Stock Price: The stock was up 85% this year, although down about 2% in the last 30 days.

Final Thoughts: Demand for cybersecurity is strong, but Palo Alto Networks raises some red flags. The “cost of money” quote might refer to the cost of tech and services that the company has to employ, which is higher.

Solana Jumps Thanks to New Users

The price of the cryptocurrency Solana jumped 16.29% on Wednesday thanks to an influx of new users.

Final Thoughts: Solana is up over 170% in the last 30 days and has hit a 2023 high. It is also one of many altcoins that are benefiting from improved market sentiment.

Trend to Watch

Big Things Coming Soon: Sonos teases a major new product coming next year (The Verge)

Repairing a Relationship: Biden, Xi Declare Progress After Concluding Four-Hour Summit (Bloomberg)

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