The most oversold stocks in the information technology sector presents an opportunity to buy into undervalued companies.The RSI is a momentum indicator, which compares a stock’s strength on days when prices go up to its strength on days when prices go down. When compared to a stock’s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered oversold when the RSI is below 30, according to Benzinga Pro.Here's the latest list of major overso ...

Financial Performance - Total revenue increased from $590,956,000 in Q4 2024 to $670,576,000 in Q4 2025, representing a growth of approximately 13.4%[19] - Net income rose significantly from $29,926,000 in Q4 2024 to $62,096,000 in Q4 2025, marking an increase of about 107.5%[19] - Gross profit improved from $508,286,000 in Q4 2024 to $583,106,000 in Q4 2025, reflecting a growth of approximately 14.7%[19] - Total revenue for the three months ended October 31, 2025, was $670.6 million, representing a 13.5% increase from $591.0 million in the same period of 2024[41] - Net income for the three months ended October 31, 2025, was $62.1 million, compared to $29.9 million for the same period in 2024, indicating a significant increase of 107.4%[118] - Annual recurring revenue (ARR) increased to $2,284,051,000 for the three months ended October 31, 2025, up from $1,942,946,000 in the prior year, reflecting strong subscription growth[134] - Gross profit for the three months ended October 31, 2025, was $583,106,000, with a gross margin of 87.0%, compared to $508,286,000 and 86.0% in the same period of 2024[134] - Operating income for the three months ended October 31, 2025, was $49,335,000, resulting in an operating margin of 7.4%, up from $27,250,000 and 4.6% in the prior year[134] - Free cash flow for the three months ended October 31, 2025, was $174,506,000, compared to $151,920,000 in the prior year[134] Revenue Breakdown - Subscription revenue increased from $560.7 million in Q4 2024 to $637.8 million in Q4 2025, reflecting a growth of approximately 13.8%[41] - Professional services revenue for the three months ended October 31, 2025, was approximately $28.9 million, compared to $27.3 million in the same period of 2024, marking a growth of about 5.9%[43] - Revenue from the United States for the three months ended October 31, 2025, was $386.0 million, up from $332.7 million in the same period of 2024, reflecting a growth of 15.9%[121] - Product revenue increased by approximately $47.1 million, or 16%, for the three months ended October 31, 2025, primarily due to increased software revenue driven by growth in software renewals and customer acquisition[188] - Support, maintenance, and other services revenue rose by approximately $32.5 million, or 11%, for the three months ended October 31, 2025, supported by a 10% growth in the end customer base[189] Expenses and Investments - Research and development expenses increased from $173,959,000 in Q4 2024 to $187,482,000 in Q4 2025, indicating a commitment to enhancing solutions and technology[19] - The company plans to continue investing in sales and marketing functions, focusing on major accounts and pipeline growth[11] - The company plans to continue investing in solution development and sales and marketing efforts to capitalize on market opportunities while improving operating cash flow[133] - Sales and marketing expenses increased by $31,832,000 (13%) for the three months ended October 31, 2025, compared to the prior year, primarily due to higher personnel-related costs from an 8% growth in headcount[197] - Research and development expenses rose by $13,523,000 (8%) for the three months ended October 31, 2025, driven by a 13% increase in R&D headcount and higher bonus and benefits costs[198] - General and administrative expenses increased by $7,380,000 (14%) for the three months ended October 31, 2025, mainly due to higher legal and outside services costs and a 9% growth in G&A headcount[199] Cash and Assets - Cash and cash equivalents rose from $769,502,000 as of July 31, 2025, to $780,421,000 as of October 31, 2025[17] - Total assets increased from $3,283,194,000 as of July 31, 2025, to $3,323,992,000 as of October 31, 2025[17] - Cash provided by operating activities increased from $161,751,000 in 2024 to $196,825,000 in 2025, reflecting a growth of 21.6%[25] - Cash, cash equivalents, and restricted cash at the end of the period increased from $716,994,000 in 2024 to $780,436,000 in 2025, marking a rise of 8.8%[25] - The company’s cash, cash equivalents, short-term investments, and available borrowing capacity will be sufficient to meet anticipated cash needs for at least the next 12 months[209] Shareholder Information - The weighted average shares used in computing net income per share attributable to Class A common stockholders, diluted, increased from 288,829 to 296,518[19] - The company repurchased approximately 0.7 million shares of Class A common stock for about $50.0 million at a weighted average price of $71.07 per share during the three months ended October 31, 2025[101] - As of October 31, 2025, approximately $411.5 million remained available for future share repurchases under the authorized program[101] - The company had 1.0 billion shares of Class A common stock authorized, with approximately 270.7 million shares issued and outstanding as of October 31, 2025[99] Debt and Financing - The company issued $862.5 million in aggregate principal amount of 0.50% convertible senior notes due 2029 in December 2024[68] - The company entered into a revolving credit agreement in February 2025 for a senior secured revolving credit facility of $500.0 million, maturing in February 2030[85] - As of October 31, 2025, the company had no borrowings under the Revolver and was in compliance with the financial covenant requiring a total leverage ratio of less than or equal to 3.75:1.00[89][88] Market and Economic Conditions - Macroeconomic conditions, including inflation and geopolitical issues, may impact customer buying patterns and sales cycles[166] - The company generates revenue primarily from the sale of the Nutanix Cloud Platform, with subscription term-based licenses typically ranging from one to five years[167] Compliance and Investigations - The company is cooperating with the DOJ regarding an investigation into historical conduct by a former employee, but does not expect this matter to materially affect its financial position[98]

Core Insights - Nutanix's Cloud Platform (NCP) has been listed in the AWS Marketplace for the U.S. Intelligence Community (ICMP), facilitating easier access for government customers to software solutions [1] - NCP integrates compute, storage, and networking into a unified platform, enhancing management efficiency and reducing operational complexity for IT infrastructure [2] - The availability of Nutanix on ICMP aims to support federal agencies in modernizing their IT environments, allowing them to focus on mission-critical outcomes rather than managing complexity [3] Company Overview - Nutanix is recognized as a leader in hybrid multicloud computing, providing a unified software platform for application management and data handling across various environments [3] - The company serves over 29,000 customers globally, assisting organizations in digital transformation and the effective management of hybrid multicloud environments [3]

Core Viewpoint - Nutanix (NTNX) is facing significant challenges despite the increasing demand for AI workload management, as evidenced by its recent financial performance and stock decline [1][4]. Financial Performance - In the fiscal first quarter, Nutanix reported adjusted earnings per share of 41 cents, meeting Wall Street expectations, but revenue was $670.6 million, falling short of the consensus target of $676.4 million [2]. - For Q2, management guided revenue expectations between $705 million and $740 million, which is below analysts' consensus estimate of $749.09 million. Additionally, Nutanix lowered its full-year revenue outlook [3]. Stock Performance - Following the mixed financial results and lowered guidance, NTNX stock experienced a significant decline, falling more than 18% in the last five sessions and nearly 34% over the past 30 days [4]. - The Technical Opinion indicator from Barchart rates NTNX as a 100% Strong Sell, indicating a negative sentiment among investors [4]. Market Sentiment - Despite the negative outlook, Barchart notes that the relative strength indicator (RSI) for NTNX is below 20%, suggesting an oversold condition that could lead to a potential reversal [5]. - Options flow indicates negative sentiment, particularly from institutional investors, during the recent trading sessions [5].

Core Insights - Nutanix is positioned as a leading cloud software company, offering a unified cloud platform that integrates compute, storage, virtualization, and networking, catering to various data management needs across on-premises, public clouds, and edge locations [2][4] - The global cloud infrastructure market was valued at over $262.7 billion last year, with projections indicating it could reach $837.97 billion by 2034, reflecting a compound annual growth rate (CAGR) above 12% [4] - Nutanix reported a revenue of $670.58 million in fiscal 1Q26, marking a 13.5% increase year-over-year, although it fell short of forecasts by $6 million [7] - The company has over 29,000 customers, including major corporations like Home Depot and Intel, highlighting its strong market presence [6] Company Overview - Nutanix's platform simplifies operations, enhances performance, and maintains control, which are essential for enterprises of all sizes [1] - The company leverages HyperConverged Infrastructure (HCI) technology, providing flexibility, scalability, and resilience, making it suitable for all applications [2] - The shift towards hybrid and multi-cloud architectures is driving demand for next-generation infrastructure providers, which Nutanix is well-positioned to meet [5] Financial Performance - Nutanix's non-GAAP EPS for the last reported quarter was $0.41, aligning with expectations [7] - Analyst Param Singh from Oppenheimer maintains a bullish outlook on Nutanix, citing its potential to benefit from the industry's shift towards HCI and the opportunity to displace VMware [8] - The current share price of Nutanix is $47.8, with an average target price of $71.17, indicating a potential one-year gain of 32% [8] Market Trends - Enterprises are undergoing significant infrastructure overhauls, rethinking data storage and management strategies, which is reshaping IT budgets [5] - The increasing importance of secure and flexible data storage solutions is driven by the rapid expansion of AI technologies [12] - The demand for unstructured data storage for AI applications is expected to grow, benefiting companies like Nutanix and Pure Storage [15]

Core Insights - Nutanix, Inc. (NASDAQ:NTNX) is recognized as an oversold global stock with potential for investment [1] - The company reported a 13% year-over-year revenue growth in Q1, totaling $670.6 million, which was slightly below expectations due to deferred deal start dates [2] - Analyst Sanjit Singh from Morgan Stanley maintained a "Buy" rating while adjusting the price target to $82, citing strong operational performance and growth metrics [2] Financial Performance - Nutanix's fiscal Q1 2026 results showed resilient demand for its hybrid multicloud platform, with bookings slightly exceeding expectations [3] - Free cash flow for the quarter was reported at $174.5 million, an increase from $151.9 million in Q1 2025 [3] - Non-GAAP net income per share (diluted) was $0.41, reflecting a year-over-year increase of $0.05 [4] Operational Strength - The company achieved an 18% growth in Annual Recurring Revenue (ARR) and a 17% expansion in net-new ARR [2] - Management maintained FY26 operating margin guidance and raised the free cash flow outlook for the year, indicating confidence in future performance [4] - Continued momentum is supported by expanded collaborations with partners such as Dell and Microsoft [4] Customer Base - Nutanix serves over 29,000 customers globally, focusing on delivering a unified hybrid multicloud software platform [5]

Core Viewpoint - Nutanix's stock fell over 18% after reporting earnings that were below analyst expectations and providing a weak forward outlook, indicating a pre-existing structural decline that was anticipated [1]. Group 1: Stock Performance and Analysis - Nutanix completed its Cakra formation and broke out in Phase 9, leading to a significant ascent, with a peak around $83.36 before entering a descent phase [2][4]. - The stock has since declined approximately 43% from its peak, which is considered normal for a descent leg in its current cycle [2]. - The current selling pressure aligns with the structural expectation that the stock will revisit the Cakra breakout level of around $31 [6]. Group 2: Future Projections - Nutanix is currently in Phase 12, with expectations that Phases 12 and 13 will focus on completing the descent, followed by a consolidation phase [7]. - Clarity regarding future performance will emerge when Phase 14 begins, which will determine the potential for a strong rally in Phase 18, referred to as Nirvana [7]. Group 3: Investor Sentiment - In July, most institutional ratings on Nutanix were bullish, but a cautious analysis highlighted structural risks and advised restraint [10]. - The descent is not complete until the stock approaches the ~$31 region, suggesting that new long positions are premature at this stage [11].

Core Insights - U.S. stock markets are experiencing early trading gains despite a technical outage at CME Group, with major indexes set for significant weekly advances but monthly declines in November [1][4][5] Premarket Activity and Futures Movements - U.S. stock futures indicated slight gains before a technical issue at CME Group halted trading, with Nasdaq 100 futures up 0.2% to 0.3%, S&P 500 futures rising 0.1% to 0.2%, and Dow futures gaining 0.1% to 0.2% [2] - ETFs tracking major indices also showed premarket gains, with SPY, QQQ, and DIA up 0.7%, 0.8%, and 0.7% respectively [2] Commodity Markets - WTI crude futures rose 0.7% to $59.10 per barrel, while gold futures increased by 0.5% to around $4,220 to $4,221 per ounce [3] - Bitcoin continued its upward trend, trading between $91,300 and $91,450, with Coinbase Global seeing a premarket jump of 2.6% to 2.7% [3] Major Market Indexes - Major U.S. equities indexes are on track for their most significant weekly gains since June, with Nasdaq Composite up 4.2%, S&P 500 up approximately 3.2%, and Dow Jones Industrial Average up about 2.6% [4] - Despite these weekly gains, all three major indexes are expected to end November in negative territory, with Nasdaq down 2.15% to 2.2%, S&P 500 down 0.4%, and Dow down 0.29% to 0.3% [5] Market Sentiment - Market sentiment is driven by optimism regarding AI stocks and expectations of a Federal Reserve interest rate cut in December, with futures pricing reflecting over 80% probability of a quarter-point cut [5] Upcoming Market Events - Key economic releases to watch include the Manufacturing Conditions ISM for November on December 1 and the Services Conditions ISM on December 3 [6] - Core Private Final Consumption Deflator inflation data and Personal Spending data for September are expected on December 5 [6] Major Stock News and Corporate Developments - CME Group shares ticked lower in premarket trading following the technical outage [12] - Robinhood Markets shares gained 1.5% in premarket trading, building on an almost 11% surge earlier in the week [12] - Alphabet shares rose 1% to 1.5% after unveiling its advanced Gemini 3 AI model, nearing a $4 trillion market capitalization [12] - Jefferies Financial Group stock edged lower after reports of an SEC investigation [12] - Deere & Co. shares tumbled 5.7% after missing earnings estimates and providing a cautious outlook [12] - HP Inc. shares fell 1.4% following fourth-quarter revenues that lagged behind estimates [12] - Nutanix Inc. shares plunged 17.8% after revenues came in below expectations [12] - Workday Inc. plummeted 7.9% after failing to meet revenue guidance [12] - Symbotic shares jumped 12.95% after analysts raised price targets [12] - Zscaler declined 13.03% following price target cuts and cautious guidance [12] - Micron Technology gained 3.24% amid continued activity in AI and semiconductor sectors [12] - Nordic American Tankers reported a net book loss but announced a consistent dividend [12] - Wipro announced a multi-year partnership to revamp its IT landscape [12] - Tata Consultancy Services signed a five-year agreement with SAP for modernization [12] - Adani Enterprises subsidiary assumed operational control of AGHPort Aviation Services [12] - Refex Industries secured a significant order worth ₹100 crore [12]

Market Overview - U.S. equity markets are experiencing a shortened trading session on Black Friday, with futures contracts for major indexes showing modest gains, indicating a cautiously optimistic start [1][2] - The Dow Jones Industrial Average (DJIA) closed at 47,427.12, up 0.7%, while the S&P 500 (SPX) and Nasdaq Composite (IXIC) also saw gains of 0.7% and 0.8% respectively, driven by optimism in AI stocks and expectations for a Federal Reserve interest rate cut [3][4] Economic Data - Initial jobless claims decreased by 6,000 to 216,000 for the week ended November 22, while continuing claims rose by 7,000 to 1.96 million for the week ended November 15 [5] - Durable goods orders for September increased by 0.5%, falling short of the Zacks Consensus Estimate of 2.2% [5] Federal Reserve Outlook - Traders are pricing in an 87% probability of a 25-basis-point interest rate cut by the Federal Reserve in December, with further reductions expected next year, influencing market sentiment positively [6] Corporate Developments - Deere & Co. (DE) shares fell 5.7% after reporting fourth-quarter fiscal 2025 adjusted earnings of $3.93 per share, missing estimates [7] - HP Inc. (HPQ) experienced a 1.4% decline in stock price due to fourth-quarter fiscal 2025 revenues of $14,639 million falling short of expectations [7] - Nutanix Inc. (NTNX) shares dropped 17.8% after first-quarter fiscal 2026 revenues of $670.58 million missed estimates [7] - Workday Inc. (WDAY) plummeted 7.9% after failing to meet market expectations for full fiscal subscription revenue guidance [11] - AppLovin Corp. (APP) gained 5.5% in the Nasdaq on Wednesday [11] - Sandisk (SNDK) is set to join the S&P 500, with its stock soaring 512% since its split from Western Digital earlier in 2025 [11] - Nordic American Tankers Ltd. (NAT) announced a $0.13 per share dividend and plans for two new Suezmax tankers [11]

Core Insights - Nutanix Inc. (NASDAQ:NTNX) experienced a significant decline of 17.75% in stock price, closing at $48.34, due to a cautious outlook following a revenue shift in Q1 FY2026 [1][3]. Financial Performance - For the first quarter of the fiscal year ending October 31, 2025, Nutanix reported a revenue increase of 13% to $670.6 million, up from $591 million year-on-year [2]. - Annual recurring revenues rose by 18% to $2.28 billion, compared to $1.94 billion in the previous year [2]. Future Guidance - The company anticipates Q2 revenues to be between $705 million and $715 million, with a non-GAAP operating margin targeted at 20.5% to 21.5% [4]. - For the full fiscal year, Nutanix aims for total revenues between $2.82 billion and $2.86 billion [4]. Management Commentary - The CFO of Nutanix indicated that while bookings were slightly higher than expected, there was a revenue shift from Q1 to future periods, which has been factored into the updated revenue guidance for Q2 and the full year [3].