PSTG - Why Pure Storage Stock Is A Smart Buy: Unpacking The Growth Drivers
2024-07-13 01:34:22 ET
Summary
- Pure Storage is a data storage pioneer in areas such as flash memory and Storage-as-a-Service.
- Secular trends like AI adoption and hybrid cloud architecture are driving the need for improved storage systems, benefiting Pure Storage's product lineup.
- Based on a reverse DCF valuation, the stock may still have some upside after a big move up over the last year.
Pure Storage ( PSTG ) is an enterprise data storage and management provider that entered the public markets in October 2015. The market has long viewed the data storage business as commoditized , and the stock hovered around $20 from when it became publicly traded until around the middle of 2021. Then the stock began to catch fire.
Pure Storage made significant contributions to modernizing data infrastructure, heavily promoting ideas like using flash memory for storage, developing a container data management platform, and creating a Storage-as-a-Service Platform. The company's innovations have helped it become a leader in Gartner's ( IT ) 2023 Magic Quadrant for Primary Storage for the fourth consecutive year.
Several positive secular trends are also taking place in the data center market, one of which is the proliferation of artificial intelligence ("AI"), which has driven the company's recent market share growth. Chief Executive Officer ("CEO") Charlie Giancarlo said the following on the company's first quarter FY 2025 earnings call , " We also believe that long-term secular trends for data storage are no longer based on the expectation of commoditized storage, but rather on high-technology data storage systems, and run very much in our favor ." ...
Why Pure Storage Stock Is A Smart Buy: Unpacking The Growth Drivers