Fergie's Tech Blog

Cisco: The anti-Microsoft

Paul R. La Monica writes in CNN/Money:

Cisco Systems is looking a lot more like Microsoft these days....and that's not a compliment.

Shares of Cisco, the leading maker of networking gear that connects computers to the Internet, have traded in a narrow range for the past year...just like Microsoft.

The company dominates its market but critics maintain that Cisco's core business is maturing...just like Microsoft.

Cisco has a ton of cash ($16.1 billion) and investors are wondering what the company should do with it...just like Microsoft.

And some analysts are even starting to worry that Cisco's technology is vulnerable to security breaches...well, you get the idea.

But there's one big difference between the two companies: Cisco actually is a growth stock and should be valued like one.

posted by Fergie @ 8/04/2005 09:41:00 AM