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Nutanix, Inc. (NTNX)

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36.39+0.11 (+0.30%)
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  • k
    kathleen
    Institutional investors are starting to file their 13Fs for the April-May-June quarter. During the quarter, Julius Baer Bank in Zurich came in as a new investor with a buy of 526,000 shares. You can't tell from the filing exactly when they bought, but it's most likely that they listened to the investor day presentation in June and decided that the time had come to own NTNX. They invested around $20m into the stock, so they obviously like the outlook for NTNX.
    Bullish
  • A
    Anonymous
    Earnings will be strong this quarter and expenses will be very low with no travel allowed other than absolute must. Would expect them to beat on top and bottom moving forward. Looks to run to $40 quickly then we should see all investment houses jump on board.
  • M
    Mark
    End of day trading.

    The shift to trading at the close began in 2008. Traders did not want to be caught off guard by surprise news and there was a lot of volatility during the financial crisis, so they would close their position in the evening.

    Thats how it began. There are two reasons why it sticks around. First, there has been an increase usage of index funds or passive funds. These funds tend to update their positions at the end of the day. From the WSJ:

    Another factor behind the shift has been the proliferation of passively managed investments, such as index funds. These funds aim to mimic an index, like the S&P 500, by owning the shares that comprise it. Index funds don’t trade as often as active investors, but when they do, it is typically near the market close, traders say. That is because buying or selling a stock at its closing price better aligns their performance with the index they are trying to emulate.

    The second reason is simply that volume attracts volume. As a result of whats mentioned above, you have a shift to end of day trading, and the corollary to that is that there is a liquidity shortage from 10am to 3pm. Thus, if you want to buy or sell a stock, but there are few buyers or sellers around, you will significant move the price when you enter your order. Obviously this does not affect retail traders, but imagine hedge funds entering or closing a billion dollar position. It can make a huge impact on price. And one way to mitigate that is to wait until there are more market participants to take the other end of your trade, just as at the end of the day. So this is a self-reinforcing trend that has begun in the markets and will likely stick around.
  • M
    Mark
    After reading some of these public private cloud articles the public and private could are becoming a bit of conundrum.

    It's like insurance. If your company has a few trucks it's more cost efficient to use an insurance company. They can spread the risk across a bigger population.
    On the other hand companies like AT&T and most large trucking companies indemnify themselves to save money because at some point you have attained that risk structure. And in fact can save money because they are not basing the cost of one truck. I won't argue other factors either way for sure.

    It looks like the same situation in cloud. For a small company renting a piece of infrastructure makes sense. But as the company grows big enough having it's own infrastructure makes sense bases on cost.
    So the question arises at what point does a company build it's private cloud, from the beginning or down the road? How easy is it to convert?

    Nutanix can go both ways. I'm not sure anyone is seeing which way this will all turn out. Could be an interesting mix down the road. A bit like how much processing is put on mainframes, Linux servers or PCs.
  • A
    Anonymous
    It sounds like good news lately and with the Massive Internet outage today , companies need a true hybrid approach so they can be up 100% of the time. If they put all their eggs into the Hyperscaler basket, that could be bad news for business.
  • M
    Meanie BigJae
    Nice bump today, but still very low volume. I wonder when the individual investors will finally get excited about this company.
    Bullish
  • B
    Brian
    We are basically at a level we were at back in Feb 2020 before the pandemic hit. Since that time we are almost 1.5 years further into the "transitions" and have many earnings beats under our belt. Bodes well for longs I'd say...
  • J
    Jay X
    Northland Securities Stick to Their Buy Rating for Nutanix
    July 20, 2021
    Northland Securities analyst Nehal Chokshi maintained a Buy rating on Nutanix on Tuesday, setting a price target of $52, which is approximately 54.44% above the present share price of $33.67...
    Bullish
  • S
    Slaphappy
    Nice couple of days. Hopefully we can close the week out with this trend.
  • V
    Veeru
    Folks, any comment on recent VAR report?
  • S
    Superboeren
    DP ended up not liking the craved family time. He launched a new company DevRev with $50 million VC funding that employs already 76 people. Confirmation for us what we knew all along that the board fired him.
  • k
    kathleen
    Media Alert: Supermicro Announces Second Open Storage Summit

    Supermicro CEO, Nutanix CEO, and Intel VP Highlight the Latest Storage System Innovations and Software-Defined Storage Solutions for Enterprise, Data Center, and Cloud Deployments

    SAN JOSE, Calif., July 15, 2021 /PRNewswire/ -- From July 27-29, 2021, Supermicro's three-day Open Storage Summit 2021 is a virtual event bringing together industry experts and thought leaders in server storage technology and data center applications to discuss and present the latest developments in software-defined storage. The Open Storage Summit 2021 is the leading online conference for innovations in all the latest storage technologies, groundbreaking ideas, and compelling insights on future storage trends.

    The event will commence with keynote presentations from Nutanix, Intel, and Supermicro senior executives on the latest software-defined storage (SDS) technology developments for enterprise, data center, and multi-cloud infrastructure, and an overview of Supermicro's expansive storage system product lines.

    Keynote presenters include: Charles Liang, Supermicro CEO and Founder; Rajiv Ramaswami, Nutanix CEO; Tarkan Maner, CCO, Nutanix; Alper Ilkbahar, VP & GM, Data Center Memory and Storage Solutions, Intel
    Bullish
  • P
    Pete
    Why is this stock stuck in a valuation gap? Because of where it is characterized as a hardware company by all these analysts. In fact if you look at the peer bubble charts you will see that it trades at a premium compared to hp and ntap etc and is the highest valued stock compared to peers.

    Once this shifts into the right category of analysis and oversight which is between current and SAAS then the valuation should change.
  • m
    metoo
    Good bounce off 33
    Bullish
  • k
    kathleen
    Mega-caps like Microsoft and Amazon are hitting record highs right now, while small caps are mostly down, with NTNX down about 10% from where it was after the investor day presentation. The gap between the Mega-caps and other stocks can only get so wide, and there should be a rotation back into small caps at some point.
    Bullish
  • P
    Pete
    Recent weakness at top partner is interesting but should be considered as such. That must be the same partner that experienced sales churn in the quarter based on the slashing of head count and attrition.

    Also note that RR is ramping the number of partners that sell nutanix and by that alone sales get diluted as more partners are added. Keep in mind these partners compete with one another and most likely business could have shifted to another partner.

    It’s actually irresponsible to note a single partner anecdote without talking about the broader trends.

    Adler should be fired
  • A
    Alpha View
    Nutanix

    Management expects 25% top line growth till 2025 which was very well received by investors with a strong rally in the past months. Many in this discussion board were highlighting the very cheap valuation of Nutanix compared to its underlying growth rate and were proven right vs very conservative Wall Street estimates. I would like to raise one issue with the company long term guidance which is the contribution from New & Upsell vs. Renewals. The first category is expected to grow at 15% while the latter is expected to grow at 50% for a total of 25%. The focus on profitability may be the reason for the decline of the New & Upsell as it costs a lot to acquire new clients but this category had an underlying growth of 25-30% in the last few years taking the run rate ACV as a benchmark for top line growth. So management expects a decline from 25% to 15%. I believe this might be too conservative for the following reasons: First the 25 % top Line growth guidance was enough to please investors as expectations were low after years of not meeting expectations and continuous changes. I think management is building some safety that will allow to keep surprising on the upside. Second, the company is building new partnership that will allow the company to grow nicely without having as much upstart costs. Second I think that Christian Alvarez will be making an important impact on channel sales. He won the « CRN WEBSITE chief channel manager Madness contest ». This will allo the channel to be more productive with great support. At the end and after the initial necessary investments it should lead to better sales with hopefully less costs attached to them. Please read and extract of the article :

    Alvarez, senior vice president of worldwide channels, joined Nutanix less than two years ago but has already had a significant impact by launching Nutanix’s new global Elevate Partner Program. He also played a critical role in helping channel partners transform their sales motion and shift go-to-market strategies during the global COVID-19 pandemic.
    Alvarez’s past experience as a solution provider helps shape his channel ethos, he said.
    “Look, I was a reseller for 11 years of my career. I know exactly what our partners go through day in and day out,” said Alvarez. “What I brought to Nutanix and our partners around ease of business and improving profitability and simplicity underscores that I’m committed to our partners. I’m 100 percent committed to making our partners successful, and so is Nutanix.”

    Worth Davis, president at Houston-based Computex Technology Solutions, a top Nutanix partner, said Alvarez has “energized Nutanix’s channel-oriented” organization.
    “He brought in a lot of good people and successfully dealt with a growing channel organization. I think the world of Nutanix and the work he’s done—we’ve had some very engaging meetings with him,” said Davis. “My wish is that all the vendor partnerships we have were as good in the channel, in both protecting the channel and energizing the channel. I wish everybody was like that. I’m happy Alvarez won the Madness [tournament].”

    Thirdly, the 15% growth is more or less the growth for Hyper Converged infrastructure (HCI) forecasted by Gartner till 2025 but DOES NOT include the growth that can come off the multi clouds. For example a company that has servers in Azure , AWS and on premises. Also it does not include the growth that comes from
    Edge computing an area that is expected to witness material growth.

    From NUTANIX & Gartner : HCI adoption continues to increase among organizations looking to modernize their IT infrastructure and build the foundation for their hybrid and multicloud environments, with Gartner expecting a 16% compound annual growth rate for hyperconverged systems and strong demand in 2021↿. Customers are increasingly looking to Nutanix for HCI solutions that not only deliver performance and reliability but also support a growing variety of use cases, including mission-critical databases, cloud native applications, business critical applications, and end user computing.
    As far as the difference between HCI and multi cloud.
    https://searchconvergedinfrastructure.techtarget.com/tip/HCI-vs-cloud-The-main-differences

    To conclude I think that the new and upsell growth might be underestimated for the reasons
    Mentioned above. But I should
    Emphasize that the company was absolutely right to be conservative considering that they need to keep the beat anse raise trend to regain long term credibility which should lead to higher multiple.
    There is some confusion about HCI vs. cloud, but you don't have to choose one over the other. Evaluate the differences between the two to see how the two infrastructure approaches differ.
    There is some confusion about HCI vs. cloud, but you don't have to choose one over the other. Evaluate the differences between the two to see how the two infrastructure approaches differ.
    searchconvergedinfrastructure.techtarget.com
    Bullish
  • P
    Pete
    What is everyone’s strategy here. Did you hold, add or trade this? Where do you folks see this going. We talk about fundamentals but not about market price. Right now fundamentals don’t matter. Holding this and not trading it has proved to be the loser game. Holding and simply adding even worse.

    What is everyone doing?
  • k
    kathleen
    BOSTON, July 13, 2021 /PRNewswire-PRWeb/ -- archTIS, a global technology provider of innovative solutions for secure collaboration of sensitive information, today announced the launch a new global Channel Partner Program to provide resellers, system integrators and MSSPs with an opportunity to add NC Protect to their solution portfolio to provide advanced information security to customers using Microsoft 365 and Nutanix Files collaboration applications.

    archTIS's portfolio of solutions protect against insider threats and ensure secure collaboration of sensitive, classified and top-secret content. Dynamic, ABAC-based policies enable fine grained security to reduce risk and enforce the zero trust methodology at the file level. NC Protect provides enhanced information protection for file access and sharing, messaging and emailing of sensitive and classified content with centralized security policies that can be applied across Microsoft 365 apps, Dropbox, Nutanix Files and Windows file shares.
    Bullish
  • k
    kathleen
    Phil Orlando, the strategist at Federated Investments, was on Bloomberg-The Close on Friday. He's bullish as we head into the Q2 earnings reporting season starting next week. He's expecting very strong earnings to lift the stock market higher as the reports come in.

    In the Jan-Feb-March quarter, Federated came in as a new investor in NTNX with a buy of 62,000 shares. Based on what I've seen in the price and volume action for NTNX, I'm going to go on record here predicting that Federated more than doubled their position during the Apr-May-June quarter. We'll find out when Federated files their 13F with the SEC some time in the next 5 weeks. I also believe that Federated will continue to buy during the July-Aug-Sept quarter, but we won't find out about that until they file their next 13F in November.
    Bullish