Feb. 26 at 6:09 PM
$NTAP If they hit exactly
$2.07 the stock likely drops.Cloud Revenue
$179M$185M+Cloud is the only AI story they have. A result of
$180M (a beat) could still be seen as a "slowdown" from last year's 32% growth.Gross Margin72.8%.The Red Flag. Memory prices (NAND) rose 15% this quarter. If margins are even 1% lower than the whisper, the stock "flushes." The Bearish "Trap" AnalysisThe "Sentiment" Gap: While Zacks gives NTAP a #4 (Sell) rank, Wedbush notes that "pessimism is high." Usually, high pessimism is bad for shorts, but NTAP just raised prices at the end of the quarter. If that price hike didn't save their margins, the drop will be violent.Limited Upside. NTAP has failed to beat analyst EPS estimates in the last 6 quarters meaningfully enough to hold gains.The "Cloud" Mirage: Public Cloud revenue only accounts for ~10% of their total business. If the market realizes their "AI" story is just a small slice of a legacy hardware pie, the P/E multiple will compress.
