Weiss Sells Cisco and Trims Meta Amid Rising Treasury Yields

Steve Weiss, managing partner at Short Hills Capital, recently revealed on CNBC’s Halftime Report that he sold his stake in Cisco Systems (NASDAQ:CSCO) and reduced his position in Meta Platforms (NASDAQ:META). Weiss cited rising Treasury yields as the primary reason for his cautious approach, noting that the 10-year yield hovered near 5.26% during the program. He anticipates yields could climb to 6%, with no signs of a near-term decline, partly due to geopolitical tensions and oil price dynamics.

Weiss explained that he exited Cisco after the stock failed to rebound following its last quarterly report. He had initially bought the stock hoping for a bounce, but the trade did not materialize as expected. Weiss emphasized that he is quick to exit positions that do not perform as anticipated. However, not all analysts share his view on Cisco. Lorne Steinberg Wealth Management remains bullish, citing the company’s steady growth rate, while billionaire Ken Fisher added to his Cisco holdings earlier this year.

Regarding Meta, Weiss described it as a large core position with a bright future. He trimmed the position because it had grown too large due to the stock’s gains and his repeated additions on dips. Weiss referred to the adjustment as “right sizing” the position, noting that the momentum had stalled last week, prompting the move.

Despite Weiss’s cautious stance, Cisco has seen significant success in the AI data center sector, securing three new hyperscale design wins in the fourth quarter of fiscal 2026. The company’s revenue and EPS growth outlook for fiscal 2027 is robust, with expectations of 15% and 17% growth, respectively. However, Cisco faces challenges, including declining gross margins due to the growing sales mix of AI hardware and increased competition from Nvidia, which recently became the top data center Ethernet switching vendor by revenue.