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From Staff Reports
Projections of continued strong global growth combined with fourth-quarter results that leapfrogged analyst estimates were enough to send the shares of networking giant Cisco Systems Inc. (Nasdaq: CSCO) up nearly 7% yesterday (Wednesday).
"We're at the right time with the right products. And the economy, from my perspective, on a global basis … have never been better," Cisco Chief Financial Officer Dennis Powell told The Associated Press yesterday. "And that bodes well for Cisco."
It bodes well for other online companies, too. Although some recent earnings reports have cited near-term slowdowns in broadband Internet growth, a number of research studies in recent weeks have all detailed highly upbeat prospects for Internet use in the years ahead. For instance, one new study says that online marketing outlays in Europe will more than double by 2012. And research details similar growth projections for China.
This explosion in spending should create all sorts of new investment opportunities in both the high-tech and marketing sectors. It will also create ongoing growth opportunities for companies such as Cisco. The San Jose-based firm is capitalizing on worldwide network upgrades as conventional Internet Service Providers (ISPs) – and new sector entrants such as Comcast Corp. (Nasdaq: CMCSA) and Verizon Inc. (NYSE: VZ)Â – roll out all kinds of new services that require ultra-high-speed networks to fully function. Among these new bandwidth-heavy offerings are so-called "killer apps" such as video on demand.