Cisco Systems, Inc. (NASDAQ:CSCO) finished the fifth consecutive positive session with a respectable gain of 1.48% yesterday. The volume was low for all those sessions and yesterday’s volume at 24 million against the daily average of 26 million was not an exception. The new generation of virtualized video solutions to be showcased by the company at the NAB show in Las Vegas this week is awaited eagerly and the market is expecting it to be very promising.
This new generation of products launched by Cisco Systems, Inc. (NASDAQ:CSCO) including virtualized video processing, is expected to reduce the time required to add new video services and cut costs. Security of the virtualized environment is expected to be a part of the show too, along with live 4K/HEVC video delivered by the virtualized Videoscape infrastructure and broadcast video production over IP.
The financial health of the company looks good as the quarterly revenue, as last stated, has increased by 7% on a y-o-y basis. The quarterly net income has increased by 67.5% on the same basis. The stock price has outperformed the broader market too in the last one year.
Now the announcement by the company to invest in an Indian mobile wallet enterprise Mobikwik sounds exciting to the market too as the mobile payments sector and the Internet of Things take a larger focus for the company. The market also welcomed the announcement of Verizon Communications Inc. (NYSE:VZ) tapping Cisco Systems, Inc. (NASDAQ:CSCO) for 100G optical technology for its metro network.
The immediate technical state looks bullish for the stock as it has bounced from the lower boundary of the channel containing the entire price action in the last 6 months. The extreme short term target comes around $29 but the rally extending $29.50 or even a new high can’t be ruled out.
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