Cisco Systems (CSCO) stock plummeted 5.01% in Friday's trading session, as investors reacted to renewed fears of a global economic slowdown triggered by President Trump's sweeping tariff announcements. The sharp decline comes amid a broader sell-off in technology stocks, with the sector facing increased scrutiny over its exposure to international trade tensions.

While Cisco has been making strides in evolving its business model towards more subscription-based revenues, the company faces challenges on multiple fronts. The networking giant is grappling with sluggish sales in its core networking business, particularly due to lackluster demand from telecommunication and cable service providers. Additionally, Cisco is encountering stiffening competition in the AI-driven networking space, which could potentially hinder its growth prospects.

Despite these headwinds, some analysts remain optimistic about Cisco's long-term potential. The company's recent acquisition of Splunk is expected to significantly expand its portfolio of software-based solutions and contribute over $4 billion in annual recurring revenue. However, investors will be closely monitoring Cisco's ability to navigate the uncertain economic landscape and maintain its competitive edge in the rapidly evolving tech sector.