Cisco stock drops after disappointing earnings

Yahoo Finance Live host Jared Blikre runs down Cisco's stock drops due to supply chain issues directly affecting sales.

Video transcript

JARED BLIKRE: Well, I want to turn our attention now to Cisco. This is a stock that is dropping hard. It looks like it's down 8% over the last-- over the session here. They released earnings after the bell that really disappointed. This is a rare miss for Cisco. So when they do miss, people perk up.

And I have some analyst commentary here. [? Jefferies, ?] which rates the stock a buy with a price target of 65, saying they feel marginally worse about the company's ability to get hold of components and delivery on its targets, but still, company continuing to grow, and the risk/reward on the stock is favorable, while multiple likely-- while the multiple is likely to expand as recurring revenue contribution to sales mix grows.

Let's take another opinion here. Here's Piper Sandrell-- Piper Sandler, which rates the stock a neutral, price target 57. They're saying an abnormal miss, which is cause for concern following its analyst day, as other managing the heads went-- as others managing the headwinds more successfully. So maybe not executing as well as its customers.