Pure storage today
(as of 12/11/2024 ET)
- 52-week range
- $32.54
▼
$70.41
- P/E ratio
- 163.16
- Price target
- $72.10
The artificial intelligence (AI) revolution is driving demand for low-latency, scalable, and reliable data storage and capacity. Pure Storage Inc. NYSE: PSTG is a leading provider of enterprise data storage with its all-flash solid-state drive (SSD) array. The Computer and technology field Neta is riding two major tailwinds: the AI revolution and storage modernization. Net storage Flash array are fast enough to access data in real-time and bypass the need to copy it from one silo to another. Pure Storage provides storage-as-a-service (SaaS) multi and hybrid cloud solutions to more than 13,000 customers, including 62% of the Fortune 500.
Its FlashBlade platform enables fast parallel live data access to manage data at rest and data in motion, which can include real-time data streaming. The company announced the launch of GenAI Pods that provide a one-stop solution for deploying generative AI. It is a turnkey system that provides a pre-configured, ready-to-use platform designed specifically for AI workloads and industries.
Pure Storage makes a deal with a top-4 hyperscaler
Pure Storage noted that it was awarded an industry-first design win with a major top-four hyperscaler in its Q3. The company did not provide specifics but noted that it expands its Direct Flash technology to large-scale environments, which are currently made up of hard disk drives (HDDs). Seagate Technology Holdings Plc NASDAQ: STX And Western Digital Co. NASDAQ: WDC. It can be either Microsoft Co. NASDAQ: MSFT, Amazon.com Inc NASDAQ: AMZN, Alphabet Inc. NASDAQ: GOOGLor Meta Platforms Inc. NASDAQ: META.
“Pure Storage has achieved another industry first in our journey of data storage innovation with a transformative design win for our DirectFlash technology in a top-four hyperscaler,” commented Charles Giancarlo, CEO of Pure Storage.
Giancarlo concluded, “This win is the pioneer for pure flash technology to become the standard for all hyperscalar online storage, delivering unprecedented performance and scalability while also reducing operating costs and power consumption.”
Solid growth in Q3 in upside guidance
Pure Storage MarketRank™ Stock Analysis
- Overall MarketRank™
- 97th percentile
- Analyst rating
- buy medium
- upside/downside
- Up 16.3%
- Low interest rate
- healthy
- The power of dividends
- N/A
- Environmental score
- -1.11
- Sense of news
- 0.86
- Insider trading
- Selling shares
- Prof. Increase in earnings
- 56.82%
Pure Storage earned 50 cents per share in Q3 2024, beating analyst estimates by 9 cents. Revenue rose 9% YoY to $831.1 million, well beating consensus estimates of $814.9 million. Subscription and Annual Recurring Revenue (ARR) grew 22% YoY to $1.6 billion. Remaining performance obligations (RPO) rose 16% YoY to $2.4 billion. The company closed the quarter with total cash and marketable securities of $1.65 billion. Pure Storage also repurchased 3.6 million shares in the quarter, returning $182 million to shareholders.
The company issued revenue guidance for Q4 2024 of $855.87 million versus the consensus estimate of $867 million. Pure Storage forecasts a non-GAAP operating margin of 15.6%.
PSTG forms a cup pattern
A cup pattern is formed after the cup climbs to a swing high to form the lip line resistance, drops to a swing low, forms a round bottom, and moves back up to retest the cup lip line resistance.
PSTG formed a cup lip line at the June 18, 2024 $70.41 swing high, before falling to the $44.73 swing low and rallying toward $58.20 before losing steam. PSTG formed a gap-fill channel at $53.79 and $60.28 after reporting solid Q3 results and raising its Q4 guidance. PSTG still needs to bounce back to the rest of the cup lip line resistance at $70.41 to complete the cup pattern before potentially creating a handle on a pullback. The daily anchored VWAP is at $49.86. The daily RSI is trying to coil at the 71-band. Fibonacci (Fib) Pullback support levels are at $60.28, $55.33, $52.38, and $47.97.
Average of PSTG Agreed price target is $72.10represents an increase of 11% And it has the highest analyst price target $93.00. Fifteen analysts have a buy rating, six have a hold rating, and one has a sell rating. The stock has 2.83% short interest.
Actionable alternative strategies: Bullish investors may consider using Cash-secured put Fib pullback at support levels to buy the dip. If shares are assigned, writing covered calls at upper Fib levels a Wheel strategy For income.
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