Cisco stock price is consolidating as bullish options flow streamed in on August 30, 2019.
Cisco stock was ranked #4 on August 30, 2019, in bullish options flow. The $47.50 calls were active with a September 6, 2019, expiration. However, we also had activity in longer dated call options contracts too. The $49 strike call with an October 18, 2019, were active as well as the October 18, 2019, $52 strike call.
The daily chart shows consolidation after Cisco stock plunged -20% since July 23, 2019.
Cisco stock plunged from the worsening China trade war. The company’s global IT exposure can’t dodge weakening macroeconomics but the company is transforming towards a healthier mix of software and recurring sales.
On August 26, 2019, Cisco announced its intent to acquire privately-held CloudCherry based in Salt Lake City, UT. CloudCherry is a Customer Experience Management (CEM) company that provides customer journey mapping, out-of-the-box integrations, and predictive analytics. Predictive analytics help contact center agents make real-time journey modifications such as up and cross-selling, discounts, service modifications and more, to meet customer needs and improve loyalty. Together, Cisco and CloudCherry will help companies transform their contact center from delivering reactive care to providing predictive support and move from isolated customer interactions to cohesive, engaging experiences for improved business outcomes.
The new cognitive and collaborative contact center uses artificial intelligence and machine learning, which empowers agents to provide more personalized customer experiences, allows companies to use data to its fullest extent, and extends the power of cloud to hosted and on-premises deployments. CloudCherry’s open API platform facilitates this by simplifying how customer data is ingested from systems of records, transactional data, and other data sources – all in real time – to help contact center agents close the feedback loop and improve customer loyalty and satisfaction.
“We’re thrilled to add CloudCherry’s market leading customer experience management technology to our collaboration portfolio,” said Vasili Triant, vice president and general manager, Cisco Contact Center Solutions. “This is the next step in realizing our vision for cognitive collaboration in the contact center, enabling the delivery of the best, most personalized customer experiences, ultimately improving customer loyalty and lifetime value.”
Cisco stock does not meet the minimum requirements for inclusion in the GST Portfolio because it’s still pricey IMO. Cisco stock price trades with a market cap of $207 billion and yet the company did $51.9 billion in sales last year. That makes the P/S 4 which is overpriced IMO. Nevertheless, a short term swing trade may set up over the coming days if the current consolidation level holds and we see more bullish options flow.
Disclosure: We do not hold any position in CSCO stock.