What can a Cisco investor do? Wait, and hope the stock stops dropping. The stock, now in a bad downtrend, dropped again this week both before and after Cisco lowered its long-term growth forecast at its analyst day on Thursday. The comes after Cisco's last quarterly conference call, in which it missed the quarter badly and lowered short-term forward guidance.
Investors had hoped they would see better news on Cisco's analyst day on Thursday. They didn't get it, and the stock is down another 10% this week. While Cisco management tried to sooth longer term strategy fears over the threat of more open Software Defined Networking (SDN) technology encroaching on Cisco's turf, it also ratcheted down its long-term growth outlook, to 3-5% compound sales growth, down from a prior 5-7%.