As mentioned in the weekly commentary, this week is a busy one for earnings. The two most salient releases for subscribers were those of Zscaler and SentinelOne. Other earnings reports of interest included Salesforce, a modest sized holding in the income/stability portfolio as well as Okta. Of course Pure Storage, the largest position in the…
A very busy week for earnings. I am going to try to cover results and guidance of the companies in the high growth portfolio that have reported these last couple of days. There obviously have been other earnings reports of interest. In particular, Nvidia’s earnings release and forward guidance were not enough of a beat…
Summary Pure Storage continues to gain market share within its category of all-flash-arrays in enterprise data centers. Pure shares have risen by almost 80% in 2024 but pulled back 10% recently due to concerns about AI opportunities and competitive pressures. Pure is transitioning to a subscription model, impacting reported revenue growth but expected to accelerate…
Summary The best strategy to invest in the AI revolution is to focus on the pick and shovel vendors in the space. These companies serve as toll takers on the road to the deployment of AI based applications. AI needs lots of storage and thus we recommend shares of Pure. AI needs unified storage/compute and…
Summary Pure Storage’s business growth is accelerating, despite a miss in Q3 results a guide down in revenue projections for the current quarter. The company’s subscription-based Evergreen revenues are expected to double year over year, contributing to overall growth. Pure’s new products, such as FlashArray E and FlashBlade E, are driving significant market share gains…
3 of our portfolio companies reported their results yesterday evening. Both Nutanix and Snowflake reported strong results and guided adequately to support the valuation of the shares. Since they did, I will review them tomorrow; most investors and subscribers are probably content with their positions. Pure shares, unfortunately, have fallen substantially because the company reduced…
How should growth investors position their portfolios to deal with the impending recession Whether the NBER or the president chooses to acknowledge the reality, a recession is either here or shortly impending. It is not, perhaps, a typical recession, but then there is really no such thing as a typical, i.e. inventory based recession any…
Assessing the outlook for Pure Storage in a recessionary environment Why look at Pure Storage (PSTG) shares now? There are an abundance of investment opportunities within the high growth IT environment. Some readers and commentators, I suppose, will say that this is a function of the relative valuation of a bubble valuation, and the valuation…
Most of the earnings from IT companies with quarters ending April 30th have been reported at this point. Overall, the quarters were not as bad as feared and quite a few companies indicated that business, after being a bit below their plans in April, had seen a snapback in May. Other companies seem not to have…
A bit of a mixed metaphor here-lumps of coal aren’t supposed to come until Christmas. But it feels like Christmas this wintry day in early December, so I decided to use the metaphor. Once again, the strong demand environment is fighting against valuation concerns and overall angst about inflation, interest rates and now the Omnicom…