Cisco Systems Inc. (NASDAQ: CSCO)
Cisco Systems News & Technicals
On Wednesday Cisco Systems (CSCO) announced that they intend to buy tech startup Jasper Technologies, software firm for Internet of Things, for $1.4 billion in a cash deal, which is expected to close during this current quarter. “Jasper is the industry’s leading IoT service platform in terms of number of enterprises and service providers; in fact, many of the world’s largest enterprises and service providers are using the Jasper platform to scale their IoT services business globally. With Jasper, companies can connect any device — from cars to jet engines to implanted pacemakers — over the cellular networks of the top global service providers, and then manage connectivity of IoT services through Jasper’s Software as a Service (SaaS) platform.” (MarketWatch) “I am excited about the opportunity for Cisco and Jasper to accelerate how customers recognize the value of the Internet of Things,” Cisco Chief Executive Chuck Robbins said in the announcement.
This news pushed shares higher and looks like CSCO will get a nice gap up Thursday morning, which it desperately needs. Shares have been in a nasty downtrend since October but have formed a double bottom at the $22.50 level and are now bouncing back above some levels of resistance, especially at the $23 level. Shares look to open above $23 so keep an eye out for that key pivot level. Looking back on the last year, CSCO has been a bit of a lagger. It spent much of 2015 consolidating between $27 and $30 per share but broke that support at the end of 2015 which has started a new downtrend. The $25 level has been a key support level in the past and will be a big hurtle to get over, however, this could be the catalyst that fuels the move. This is a great deal for CSCO that will add value to the firm and to its investors. Currently analysts have an average price target of $30.27.
Cisco Systems, Inc. designs, manufactures, and sells Internet Protocol based networking products and services related to the communications and information technology industry. It provides a broad line of products for transporting data, voice, and video within buildings and across campuses. The company’s product offerings comprises of the following categories: Switching, Next-Generation Network (NGN) Routing, Service Provider Video, Collaboration, Data Center, Wireless, Security, and Other Products. Switching is an integral networking technology used in campuses, branch offices, and data centers. The Switches are used within buildings in local-area networks and across great distances in wide-area networks. Switching products offer many forms of connectivity to end users, workstations, IP phones, access points, and servers and also function as aggregators on local-area networks and wide-area networks. The Next-Generation Network Routing technology is fundamental to the foundation of the Internet. This category of technologies interconnects public and private wireline and mobile networks for mobile, data, voice, and video applications. The Service Provider Video delivers entertainment, information, and communication services to consumers and businesses around the world. The Collaboration portfolio integrates voice, video, data, and mobile applications on fixed and mobile networks across a wide range of devices and endpoints, including mobile phones, tablets, desktop and laptop computers, and desktop virtualization clients. The Unified Data Center unites computing, networking, storage, management, and virtualization into a single, fabric-based platform designed to increase and simplify operating efficiencies and provide business agility. The Wireless access via wireless fidelity (Wi-Fi) is a fast growing enterprise technology with companies and public institutions across the globe investing to provide indoor and outdoor coverage with seamless roaming for voice, video, and data applications. The Security portfolio of products and services offers identity, network, and content security solutions designed to enable customers to reduce the impact of threats and realize the benefits of a mobile, collaborative, and cloud-enabled business. Cisco’s Collaboration portfolio integrates voice, video, data and mobile applications on fixed and mobile networks across a wide range of devices and endpoints from mobile phones and tablets to desktops, Macs and laptops to desktop virtualization clients. Cisco Systems was founded by Sandra Lerner and Leonard Bosack on December 10, 1984 and is headquartered in San Jose, CA (MarketWatch)