Cisco’s Top 10 Suppliers: The Impact of May’s Earnings
Amid the market sell-off from the latest Trump fiasco—this time his possible obstruction of justice—Cisco reports tonight after the markets close.
May 17 2017, Updated 12:04 p.m. ET
Cisco will set the tone for suppliers
Amid the market sell-off from the latest Trump fiasco—this time his possible obstruction of justice—Cisco reports tonight after the markets close.
Cisco, the largest network equipment supplier, is near highs with the rest of the market and after cyber attacks convinced investors that more security gear is necessary. Although Cisco (CSCO) itself is an important read on global demand for technology (QQQ) and networking gear specifically, its suppliers often really get whipped around when Cisco reports.
To help investors prepare for either a nice pop or painful whiplash, we thought it would be a good idea to take a look at the top ten suppliers to CSCO by percentage of Cisco’s cost of goods sold that these companies provide.
They often will move even more than Cisco itself based on Cisco’s importance to them, as estimated by Bloomberg. Though these numbers aren’t exact, they do show the relative importance of Cisco for these suppliers. One other company that often moves with Cisco is Cavium (CAVM), a large chip supplier for Cisco.