Why Is Cisco Stock Falling on Thursday?
Key takeaways
- Cisco’s share price slipped on a critical security flaw, adding pressure to an already weak short‑term technical picture while its long‑term trend remains supportive.
- CSCO shares down 3.93% to $109.17
- 20‑day SMA $111.22
- 50‑day SMA $111.88
What happened
Cisco Systems Inc. (NASDAQ: CSCO) shares fell 3.93% to $109.17 after the company disclosed a critical security flaw in its Secure Email Gateway product, which has a 9.8 severity score and is actively exploited. The drop came amid a broader sell‑off in technology stocks, with the Nasdaq down 0.69% and the S&P 500 up 0.05%.
Why it matters
The vulnerability, rated "Critical," raises immediate concerns about Cisco’s product security and could prompt customers to seek alternatives, potentially impacting revenue and market confidence. The timing of the disclosure during a market pullback amplifies the negative reaction, as investors weigh the risk of…
Short-term and longer-term
Short-term. Over the next few days, Cisco’s price could test the $107.50 support; a break below could trigger a sharper decline toward the 20‑day SMA at $111.22.
Longer-term. For investors, the security issue highlights the importance of Cisco’s product security posture, but the company’s solid momentum and quality scores suggest it remains a defensible long‑term play.