In 2018 there is a technical reserve that is hotter than NVIDIA Corporation (Nasdaq:nvda). Shares of NetApp Inc. in (NASDAQ:NTAP). Shares of NetApp are not very good maybe NVIDIA in the future.
Our Luke Lango says the move is not over, and that NetApp may soon be trading at $75 or more. It opened on April 13 about 69$.per share.
NetApp is a storage company data. This makes the set of devices that are filled with memory chips, which are aimed at moving data out of dry storage for fast processing. He also develops software for data management program called ontap, which enable companies to manage this fast memory.
Before You hit the Buy button, however, it might help to know why the company’s shares suddenly so hot.
Magic the term hybrid cloud. After nearly ten years of talking about it, large companies are finally moving their “crown jewels”, their corporate data, cloud technologies.
My Data, My Cloud
“Putting all your eggs in one basket and watch that basket.” Mark TWAIN used the line in his head and Patsy Wilson, but it was originally said by Andrew Carnegie, in an interview for students of business in Pittsburgh.
For the most part of this decade, the key basket for large enterprises client / server systems in corporate data centers. The cloud, in their opinion, was for the non-essential data and client systems. But now these companies finally decided to switch key data standards in the cloud, making it more useful for management.
NetApp is the key to this transition. Her memory of sitting on the front end of the corporate data center or corporate cloud. Its software is used to manage memory, and bring the data forward for use.
Until recently, NetApp was slow growth, even the growth of the company. Revenue for fiscal 2017 was 10% below where it was in fiscal year 2015.
But lately business has gone uphill. Revenue for the quarter ended in July last year, for the quarter ended in January, $1.422 for the quarter ended in October, and 1.523 billion $1,325 billion. For the quarter ended in April, he should enter into $ 1.6 billion. Watch it beat that number.
At the time analyst 5 April, the company predicted that it can support 15% annual growth over the next three years, even with a doubling of dividends to achieve a return of 3%.
Since then, shares of NetApp were out of the competition, to 18% in just over one week. Analysts say about his “dominate the market”.
There is the key to the future in that analyst day presentation, unpleasant.
Instead of seeing its new profitability as a reason for investment, management sees this as a reason for withdrawal. He plans to buy back shares and increase dividends, and “disciplined” approach to acquisitions, that is, not to expect large transactions.
The fact is that while a hybrid cloud is an important transition, this once, not as cool as analysts thought it would in the beginning of the decade. This is the end of the transition the cloud, hard work, which (hopefully) need only be done once.
This is not, in the end, like NVIDIA, whose graphics chips are built new markets, such as artificial intelligence. It is a corporate move that will only require repair.
Bottom line in stock NetApp
Management NetApp the wise here, be honest.
The cloud revolution has pushed the majority of corporate data to new cloud architecture. Hybrid cloud is a Key part, but it’s a relatively small part, dealing with the revolution which has already occurred.
Boom, NetApp, in other words, has an expiration date. If you buy now, you know what you are going to sell later.
Company Dana Blankenhorn-financial and technical journalist. He is the author of historical mystery romance the reluctant detective, time travel, is now available on Amazon Kindle store. Write to him at email@example.com or follow him on Twitter @danablankenhorn. At the time of this writing, he owned shares of the companies mentioned in this story.