Cisco Stock Craters 12% in Worst Single-Day Drop Since 2022
Rising memory prices are squeezing Cisco's margins, sending shares into freefall on Thursday.
Cisco Systems just had a very bad day. Shares of the networking giant nosedived more than 12% on Thursday — the stock's ugliest session in three years.
The culprit? Surging memory prices eating into the company's margins. As memory costs climb across the industry, Cisco's hardware-heavy business is feeling the squeeze harder than most.
The plunge marks a stark reminder that even networking titans aren't immune to component cost pressures. Memory pricing has been on an upward trajectory, and Cisco's earnings outlook apparently spooked investors enough to trigger a massive selloff.
For a company that has spent years positioning itself as a software and services player, Thursday's bloodbath shows the hardware side of the business can still drag the whole ship down when supply chain economics turn ugly.