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Today we are watching…
1.ย Cisco (#csco)
Cisco is holding on for dear life as the trade war intensifies yet again, managing to post some surprisingly robust numbers. The tech firm has branched out from its hardware roots, choosing to capitalize on a fast-growing security market. Cisco has pulled most of its manufacturing out of China, which is one of the reasons it’s so confident ahead of today’s earnings release. Analysts are more on the fence about whether the company can surpass expectations, now set at $0.82 of profit per share on revenues amounting to $13.39 billion.
2. Canopy Growth (#weed-adr)
For all investors’ energetic backing this quarter, what can this Canadian marijuana player return? The road to profitability is likely to stretch further yet, but the company’s production drive of the devil’s lettuce is looking crucial. It’s an arms-race to grow pot as firms desperately lunge for economies of scale, one of the few promised competitive advantages in weed. Brand power will also make a big difference, which explains Canopy’s move into ganja-infused drinks, chocolates, and vape products. Wall Street pundits have Canopy’s profit per share in the red at -$0.28, on $86 million in revenues. The company aims to beat those estimates today.