Cisco Systems’ Journey Since Going Public
On February 16, 1990, Cisco Systems (NASDAQ:CSCO) made its debut on the stock market at $18 per share. Back then, it was a $224 million company focused on software that connected computer networks over long distances. Two computer support staff from Stanford University, who were looking to expand the campus network, founded the company in 1984 after recognizing the broader commercial implications of their innovation, famously dubbed the “network extension cord.”
Their routers and switches became so essential that Cisco earned the title of the “backbone of the Internet,” playing a significant part in the dot-com boom similar to firms in the semiconductor industry like Nvidia. This relevance continues today, especially amid the current global AI revolution.
By 1993, Cisco was experiencing rapid growth, as highlighted in a New York Times article that illustrated its remarkable ascent to major player status. At that point, its stock had already climbed an astonishing 1,850%, considering stock splits.
However, Cisco’s remarkable journey was not finished. As enthusiasm for the Internet surged, the company saw its stock price soar even higher. By early March 2000, the total return for the “Backbone of the Internet” had exceeded 100,600%.
But the notorious dot-com bubble burst was just around the corner. Following March 2000, Cisco’s stock price plummeted over 70% in a year-long downward trend. It wasn’t until December 2025 that the stock price would eventually recover and surpass its March 2000 peak.
When Cisco went public at $18 per share, a $1,000 investment could have purchased about 55.55 shares. After stock splits, these shares could have grown to approximately 16,000.
As of the last closing price at $84.82 per share, those shares would have amassed a remarkable value of $1,357,120. Cisco began issuing dividends in 2011, and since then, its quarterly dividend has consistently increased yearly, now totaling $1.64 per share annually. That initial $1,000 investment could generate $26,240 each year now.
It’s wise to ponder a few points before investing in Cisco Systems stock:
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