Nutanix: The last chapters of a long running set of transitions Nutanix (NTNX) burst upon the scene as a disruptor in what is known as the hyper-convergence space about a dozen years ago. Indeed, it might be said that Nutanix was one of the first companies to offer HCI technology. The company initially offered both hardware and…
It has been a difficult season to be an investor in high-growth tech. The economy is thought to be on the cusp of a recession. Supply chain issues can plague vendors. Investors seem to believe that high-growth tech is particularly risky. Investors seem to believe that future earnings and cash flow should be discounted at…
It has been reported on Sunday evening that Broadcom is in talks to acquire VMware. VMware has gone through a series of ownership changes in recent years. Most recently, the company was spun-off from Dell at the end of 2021. At the time of the spin-off the announcement said that the two companies would retain…
Summary Shares of High-Growth software companies have led the market down so far in 2022. The decline in valuations and absolute share prices has been at rates that rival anything in the recent past. This decline has occurred against a background of strong and growing demand in the Information Technology (IT) space. Ironically, software demand…
Summary Nutanix shares declined about 4% today, Thursday, October 7th. They are down about 6% so far this week, and they have declined by about 15% since making a high on Sept. 7th in the wake of achieving very strong quarterly earnings. The proximate cause of today’s share price decline, when the tech/software index rose by…
I am sure that subscribers will recognize that the last few days have seen a rather substantial pull-back in high growth tech names. Some losses have been greater than others. None of the valuation contraction has been based on some particular changes in the outlook for growth names, or their overall operational performance. We will…
Several software companies reported their results on, Sept. 1. 2021. Almost all of the results were upsides; in some cases the shares responded positively, in other cases not so much. I try not to get particularly focused on how shares respond to quarterly announcements as there are so many variables that go into setting short-term…
Nutanix held a virtual analyst day earlier this week. It was an opportunity for the new CEO to put his personal stamp on expectations in terms of financial performance and operating strategy. The event was well received; the shares rose and are now trading at close to their high-point for the year. While the shares…
Several subscribers have asked me to comment about the share price implosion in the IT space this past week and what names can be bought to take advantage of this panic. I do think that this is a panic that presents some opportunities for subscribers with spare cash. The concept of this panicis is that…
Summary Enterprise software turned in a spectacular performance in 2020. My tea leaves suggest that the space will continue to outperform broad indices in 2021. I think a reasonable portfolio should focus on those companies who experienced demand headwinds in all or part of last year. I have taken a portfolio approach to making recommendations.…