Jim Cramer’s Bearish Calls: 10 Tech Stocks Heading for a Crash

7. Cisco Systems, Inc. (NASDAQ:CSCO)

Number of Hedge Fund Holders In Q3 2024: 60

Date of Cramer’s Comments: 08-20-24

Performance Since Then: 17.40%

Cisco Systems, Inc. (NASDAQ:CSCO) is one of the biggest IT hardware firms in the world. It sells products such as routers, switches, and optical networking equipment. Cisco Systems, Inc. (NASDAQ:CSCO)’s shares had lost 10.4% until August 14th as the broader non-AI IT spending slowdown affected the firm. However, its fiscal Q4 earnings report saw the firm guide Q1 revenue at a $13.75 billion midpoint which was higher than analyst estimates of $13.71 billion. Its Q4 revenue and adjusted profit per share sat at $13.64 billion and $0.87 and also beat analyst estimates. Since the earnings, Cisco Systems, Inc. (NASDAQ:CSCO)’s shares have gained 30%. Soon after the earnings, Cramer warned viewers to not chase the stock over $50.

“I thought it was a very good quarter, but it seems that there wasn’t much follow-through afterward. To me, it feels like you shouldn’t chase it here over $50. However, I do like what they’re doing, especially with Splunk, and Chuck Robbins, the CEO, bought Splunk at what appears to be a good price. Things are looking better, inventory is clean, but I wouldn’t recommend buying aggressively over $50. That approach doesn’t work for me.”