Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, September 22, 2023

Article Excerpt

CISCO SYSTEMS INC., $53.57, Nasdaq symbol CSCO, is a buy. Through the stock, investors tap a global producer of hardware and software that links and manages computer networks. Cisco is now buying Splunk Inc. (Nasdaq symbol SPLK), which makes software that lets organizations analyze their data in real time. That helps clients quickly identify and respond to potential data failures and breaches. The company will pay $28 billion in cash for Splunk. To put that price in context, its market cap (the total value of all outstanding shares) is $217.2 billion. Cisco also held cash and short-term investments of $26.15 billion as of July 29, 2023. The purchase will enhance Cisco’s current cybersecurity software business. Their combined expertise in artificial intelligence will also help clients better anticipate and prevent cyberattacks. Cisco expects to complete the purchase by September 30, 2024. The new operations will increase its revenue from recurring software subscriptions, and immediately add to its cash flow. Moreover, the acquisition will not impact the company’s share…