The Rising Influence of Rising Affluence

[DewDiligence]

CSCO -7% on “precipitous” drop in China sales and weak FY1Q20 guidance:

https://www.wsj.com/articles/cisco-gives-lower-than-expected-forecast-for-current-quarter-11565814857

The largest drivers of the forecast, Cisco officials said during an earnings call Wednesday, are the continued decline in business from service providers, and China, a small part of its business but one that Chief Executive Chuck Robbins said “dropped precipitously” with the continuing trade dispute.

He said Cisco has for years sold products to large carriers in China and state-owned enterprises. He said Cisco hasn’t been invited to participate in bids, “which is not surprising given the current situation.”