Core Viewpoint - Pure Storage, Inc. (PSTG) has shown strong stock performance with a year-to-date gain of 38.7%, outperforming its sub-industry and major indices, although it has recently lowered its outlook for total contract value (TCV) sales, leading to a decline in stock value [1][10][17]. Group 1: Financial Performance - PSTG's stock closed at $49.44, down 30% from its 52-week high of $70.41 reached on June 18, 2024, and is currently trading below its 50-day moving average, indicating a bearish trend [2]. - Subscription services revenues increased by 25% year-over-year to $361.2 million, accounting for 47.3% of total revenues in the last reported quarter [4]. - The company reported cash, cash equivalents, and marketable securities of $1.8 billion as of August 4, 2024, with cash flow from operations amounting to $226.6 million, up from $101.6 million in the prior year [8]. Group 2: Product Demand and Innovations - Strong demand for FlashBlade solutions, including FlashArray//E and subscription-based offerings, is driving PSTG's top line [3]. - The introduction of Evergreen//One, a storage-as-a-service solution designed for AI workloads, is expected to enhance market opportunities for the company [5]. - Enhancements to Pure Fusion, which automates storage management, aim to improve efficiency and agility for enterprise customers [6]. Group 3: Customer Base and Market Position - In the second quarter of fiscal 2025, PSTG added over 261 new customers, bringing the total customer count to more than 13,000, including 62% of Fortune 500 companies [7]. - The company is experiencing extended closing deadlines for larger Evergreen//One deals, which has led to a downward revision in TCV sales outlook [11]. Group 4: Outlook and Valuation - PSTG has lowered its guidance for TCV sales from $600 million to $500 million, reflecting a growth expectation of 25% year-over-year instead of the previously anticipated 50% [10]. - Analysts have revised earnings estimates downward for the current and next quarters by 2.3% and 6%, respectively, while the estimate for the current year has been revised upward by 1.2% to $1.66 [14]. - The stock is trading at a forward Price/Earnings ratio of 27.12X, significantly higher than the industry average of 15.01X, indicating a premium valuation amid uncertain near-term prospects [15].

A month has gone by since the last earnings report for Pure Storage (PSTG) . Shares have added about 0.3% in that time frame, underperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Pure Storage due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Pure Storage Q2 Earnings Beat Estimates Pure Sto ...

Pure Storage (PSTG) recently partnered with Rubrik, Inc. (RBRK) to empower enterprises seeking robust and scalable cloud solutions to fortify their cybersecurity posture. By combining Rubrik's Security Cloud with Pure Storage's advanced data storage platform, the partnership aims to deliver a reference architecture that ensures uptime, long-term retention and cyber resilience. The partnership is applying a "three-layered defense strategy" to provide a comprehensive solution for modern data challenges. The j ...

My last article in July about Pure Storage (PSTG) gave it a buy recommendation based primarily on secular trends like Artificial Intelligence ("AI") driving the need for more power-efficient and faster long-term storage systems that use I have been a Merchant Seaman that has traveled the world for over 30 years. Within the last 15 years, I developed a very intense interest in investing. I learned a lot of what I know about investing from The MF. Also because I have a engineering background, I often tend to ...

Though the stock market has rallied back near all-time highs as investors shook off concerns of macro slowdowns and insufficient Fed rate cuts, a number of individual stocks have still been hit hard in the wake With combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha si ...

The computer storage devices industry players are well-poised to gain from solid momentum in cloud computing, Internet of Things (IoT), auto, connected devices, virtual reality and Artificial Intelligence (AI) in the long run. Per a report from Gartner, worldwide IT spending is projected to reach $5.26 trillion in 2024, indicating an increase of 7.5% from the 2023 levels. This is an improvement over the earlier projection of overall spending of $5.06 trillion. Gartner also reported that data center systems ...

Pure Storage (PSTG) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock. Over the past month, shares of this data storage company have returned -5.5%, compared to the Zacks S&P 500 composite's +4% change. During this period, the Zacks Computer- Storage Devices industry, which Pure Storage falls in, has lost 13.6%. The key question now is: What could be the stock's future direction? ...

Pure Storage (PSTG) reported non-GAAP earnings per share (EPS) of 44 cents for second-quarter fiscal 2025, which beat the Zacks Consensus Estimate by 15.8%. The company reported non-GAAP EPS of 34 cents in the prior-year quarter. Total revenues soared 11% from the year-ago quarter to $763.8 million and beat the Zacks Consensus Estimate by 1%. The top-line expansion stemmed from healthy demand trends across the data storage platform as customers shift cost-sensitive workloads to all-flash. Steady momentum in ...

Core Viewpoint - Pure Storage Inc (NYSE:PSTG) stock is experiencing a significant decline despite reporting positive second-quarter results, including better-than-expected earnings and revenue [1] Group 1: Financial Performance - The company maintained its full-year revenue outlook but lowered its guidance for subscription-as-a-service (SaaS) related total contract value [2] - Operating income guidance came in below expectations according to FactSet [2] Group 2: Market Reaction - PSTG stock was down 12% to trade at $52.53, marking its worst daily percentage loss since November [3] - The $50 level has been a strong support line since a 25% post-earnings increase on February 29, coinciding with its ascending 200-day moving average [3] - Year-to-date, the equity has increased by 47.5% [3] Group 3: Options Activity - Call traders are actively buying on the dip, with 6,801 calls exchanged compared to 1,141 puts, representing 2.5 times PSTG's average daily volume [4] - The October 55 call is the most popular, with new positions being opened [4]

Pure Storage (PSTG) reported $763.77 million in revenue for the quarter ended July 2024, representing a yearover-year increase of 10.9%. EPS of $0.44 for the same period compares to $0.34 a year ago. The reported revenue represents a surprise of +0.95% over the Zacks Consensus Estimate of $756.59 million. With the consensus EPS estimate being $0.38, the EPS surprise was +15.79%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall S ...