Cisco's Memory Costs Crush Stock, But Nasdaq Climbs Higher

Cisco Systems reported record fourth-quarter revenue of $17.3 billion and adjusted earnings of $1.22 per share, but its gross margins shrank due to soaring memory costs.

The company's shares fell 9.3% despite the strong results, subtracting about 68 points from the Dow Jones Industrial Average and roughly $41 billion in market value.

The decline was partly offset by Goldman Sachs' 1.1% gain, which added about 68 points to the index, but the Nasdaq Composite still managed a 0.53% increase as Micron Technology and SanDisk surged on an investor day presentation.