The backbone of the Internet has surged to its highest levels since the dot-com bust – all before it reports earnings Wednesday.
CNBC’s Jim Goldman reported that Cisco (CSCO) has been trading steadily higher since June. In addition to doubling its investment in China to $16 billion, the old tech bellwether seems to have regained relevance in the Web 2.0 age as bandwidth and networks are built out to accommodate more web traffic that needs to be processed faster. From the popularity of YouTube to the rise of Facebook, almost anything web-related benefits Cisco’s bottom line.
According to Goldman, Cisco should continue to build on its momentum after earnings so long as it meets expectations. It doesn’t even have to blow away the number, he said. A solid report coupled with an optimistic outlook could send shares even higher.
Pete Najarian is so bullish on Cisco that he plans on buying shares Wednesday morning to get in ahead of earnings.
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Trader disclosure: On Nov. 6, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Jeff Macke owns (YHOO), (INTC), (ATVI); Pete Najarian owns (CY), (BHP), (CSCO), is short (MBI), owns options in (BHI), (BIDU), (C), (FMCN), (GOOG), (HAL), (YHOO); Finerman’s firm owns Russell 2000 Puts, S&P 500 Puts, (CROX) options, (MSFT) options, (LEH) puts, is short (MER) and owns (MER) puts, (TSO), (TWX), (YHOO), is short (MDY), (IJR); Finerman’s firm and Finerman own (GS)