Cisco poised for breakout as analyst predicts stock rise
- Cisco Systems Inc. has reduced its workforce by 7% in August 2024, following a previous cut of 4,000 employees in February.
- Despite these layoffs, the company reported nearly $54 billion in revenue, marking its second-best year.
- Analyst Jim Lebenthal predicts a bullish trend for Cisco's stock, indicating potential for further gains due to a Golden Cross formation.
In the United States, Cisco Systems Inc. is experiencing a significant technical shift as it approaches a potential breakout in its stock performance. This comes after a series of layoffs, including a 7% reduction in workforce in August, following an earlier cut of 4,000 employees in February. Despite these challenges, Cisco reported nearly $54 billion in revenue, marking its second-best year ever. The company's strategy behind the layoffs is to focus on investing in key growth opportunities, indicating a long-term vision despite short-term setbacks. Tech analyst Jim Lebenthal has noted a bullish trend for Cisco, highlighted by a Golden Cross formation in its stock chart, which suggests that the stock price is poised to rise further. Currently, Cisco's share price is above both its 50-day and 200-day moving averages, indicating strong trading momentum. Investors are advised to monitor Cisco closely, as the combination of technical indicators and the company's strategic adjustments could lead to new highs in its stock value.