Is Cisco Stock A Buy Amid Splunk Deal, With Fiscal Q2 Earnings Due?

Tech industry giant Cisco Systems (CSCO) has announced the acquisition of software company Splunk (SPLK) for $28 billion in cash. The deal raises questions about the impact on CSCO stock. Cisco stock had a 6% increase in 2023 but pulled back from a 52-week high of 58.19 on Sept. 1. The Nasdaq composite grew by 43% in 2023. Cisco’s fiscal second-quarter earnings are due on Feb. 14. The company aims to shift its focus from selling network switches and routers to increasing recurring revenue from subscription-based software and services. The acquisition of Splunk is expected to close in 9 to 12 months.