Cisco (NASDAQ:CSCO) fell after reporting solid earnings results but providing weaker-than-expected earnings guidance for the coming quarter. Cisco is transforming its business, moving toward subscription services and away from larger one-time sales, and if successful, we think the shares will be awarded a significantly higher valuation, similar to what has occurred with Microsoft and Oracle more recently.
From Yacktman Fund (Trades, Portfolio)'s second quarter 2017 commentary.
