2024-04-07 23:48:33 ET
Summary
- Nutanix has experienced a significant rally this year, driven by AI-related deals and a focus on profitability.
- There are risks to consider, including slowing growth rates and uncertain macro pressures which are causing deal closings to elongate.
- With NTNX's valuation at >6x revenue and signs of weakening growth, it may be prudent to lock in gains and invest elsewhere.
With the S&P 500 continuing to show no slowdown in momentum, there's a growing argument to be cautious with our portfolios. I have more than 30% of my holdings socked away in short-term bonds and cash, waiting for a better time to deploy the capital back into equities: and within the stocks that I'm holding, I've been cautious to prune off recent winners that have grown into outsized valuations....
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For further details see:
Nutanix: High Valuation, Proceed With Caution (Rating Downgrade)