What Cisco Must Do to Preserve Its Moat
We'll be watching Cisco very closely to see how management reacts to the firm's clear inability to compete in the consumer market.
Pat Dorsey: Hi, I'm Pat Dorsey, director of equity research at Morningstar.
Tech bellwether Cisco this week posted its second disappointing earnings outlook for the past two quarters, sending the stock down about 15%. The market is worried about competition in Cisco's core routing and switching markets, but we think it's actually not the bigger concern for Cisco's competitive advantage, or economic moat as we like to say at Morningstar.
Pat Dorsey does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.