Cisco Has A Pile Of Cash To Spend, But Is Rival Arista Too Big To Buy?
@CiscoSystems ( #CSCO) could aim for a big acquisition in the wake of its plans to bring back some $67 billion in overseas cash, but will it have enough to truly shake up the networking sector? With Cisco’s stock also trading at a 17-year high, the computer networking giant could use a combination of equity and cash to finance a big deal. Cisco stock jumped 4.7% to close at 44.08 on the stock market today after reporting fiscal second-quarter earnings and revenue that topped expectations on Wednesday. Archrival @AristaNetworks ( #ANET) has a market valuation of $22 billion. That high market cap, coupled with a deal premium and the fact @Cisco has earmarked $25 billion for share repurchases, could put @Arista out of reach, analysts say. Arista, which reports fourth-quarter earnings late Thursday, has been grabbing share in the data center switching market from Cisco. Other names that some analysts throw out as acquisition targets include software firms @ServiceNow (NOW), @Splunk (SPLK) and privately-held Slack; data center firms @Nutanix (NTNX) and @Pure Storage (PSTG); as well as cyber-security technology providers like @Palo Alto Networks (PANW)