Cisco Gains Steam as Amazon Will Not Build Cheaper Rival Hardware

Shares of Cisco saw a gain of nearly 4% in extended after-hours trading on Wednesday.

Traders were happy to learn from a MarketWatch report that Amazon Web Services has no plans to compete against the company by selling networth switches.

A story last week had said Amazon’s AWS was considering the move.

Cisco confirmed to CNBC in a statement, “Cisco and AWS have a longstanding customer and partner relationship, and during a recent call between Cisco CEO Chuck Robbins and AWS CEO Andy Jassy, Andy confirmed that AWS is not actively building a commercial network switch.”

AWS also confirmed the statement according to MarketWatch.

Cisco’s rival Juniper also saw a slight gain in extended hours after the news.

Disclaimer: We have no position in Cisco Systems, Inc. (NASDAQ: CSCO) nor Amazon.com, Inc. (NASDAQ: AMZN) and have not been compensated for this article.