NetApp Falls On Quarterly Performance As Market Cycles Point Down
Steve Miller | May 24, 2019 07:09AM ET
- NetApp (NASDAQ:NTAP) fell 8% on Thursday, after the company posted earnings that missed Wall Street expectations.
- We believe the stock faces more downside risk in the coming weeks as the current market cycle comes to a close.
NetApp (NTAP) Stock Weekly Chart
The company reported earnings per share of $1.22 and total revenue of $1.59 billion, compared to analyst estimates of $1.26 and $1.65 billion. For this quarter, management expects revenue of $1.315-1.465 billion compared to the average estimate of $1.48 billion.
CEO George Kurian was frank in his assessment, “This is not how I'm used to showing up, and we’re taking concrete actions to quickly address the issue. Our opportunity is large and growing, but we need to do more to capture it.”
Our analytical framework focuses on market cycles for stocks and commodities. We see NTAP as in the final declining phase for its current cycle. We believe a bottom is due in the next 2-3 weeks. However, the depth of the drop says sell the next rally.
For more from Slim, or to learn about cycle analysis, check out the askSlim Market Week show every Friday on our YouTube channel .
/h2
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.