Cisco Systems, Inc. (NASDAQ:CSCO) stock has received appreciation over the latest news that floated around, pertaining to the purported step down of CEO John Chambers. Chambers was at the helm of affairs for two long decades. Once a great valued stock, Cisco is currently under pressure due to impropriety revolving the same, in the realm of cloud computing.
A New CEO
49-year-old Chuck Robbins shall take over the role as the CEO, after the longest-serving CEO, Chambers steps down. However, the latter shall remain a part of the team and the board, as a Chairman.
Analysts are apprehensive of a change that could refocus Cisco. Under Chambers, the company had purchased dozens of firms, without adding proper value to the entire core networking business. It is high time that the successor, Chuck Robbins changes his plans and takes up the task of reforming the company, focusing on growth and profitability.
From Boom To Doom
During its boom in 2000, Cisco Systems, Inc. (NASDAQ:CSCO) was a stock market sensation, with a net market value over $600 billion. However, this has dropped significantly and now annual profit is around $150 billion. Currently, Robbins is the VP of operations globally, catering to the sales worldwide. As this change happens, with Robbins at the helm, the employees need to support and company should show better aggression and intent to garner profits.
Aggression Is The Key
Over the last 16 months, Cisco was in search of a CEO. However, lately it has zeroed down to Robbins. Chambers played a pivotal role in augmenting CISCO sales from $1.2 billion to $48 billion since 1995. There are greater expectations from the younger and aggressive leader who would be taking over the reins.
The news reflected in a sudden soar in Cisco’s shares; they were up by 0.4%, reaching $29.24 in morning trading. Robbins has a key role to play henceforth in the holistic growth and development of Cisco.