Cisco Shares Plunge 12% on Weak Guidance and Margin Pressure

Cisco's stock experienced a significant downturn on Thursday, plunging 12% and marking its worst day since 2022. The sharp decline followed the company's release of lukewarm guidance for its upcoming financial period. Management cited considerable pressure on profit margins, primarily attributed to fluctuating memory prices. This disappointing outlook suggests lower-than-expected future performance for the networking giant. The weak guidance underscores challenges in the current market environment affecting the tech sector. Investors reacted negatively to the revised expectations, reflecting concerns over profitability.