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Nutanix stock soars to all-time high, reaches $74.34

Published 26/11/2024, 01:36 am
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Nutanix Inc . (NASDAQ:NTNX) has reached an impressive milestone, with its stock price soaring to an all-time high of $74.34. This peak represents a significant achievement for the cloud computing company, reflecting a robust performance that has caught the attention of investors and industry analysts alike. Over the past year, Nutanix has seen its stock value skyrocket, with a 1-year change showing a remarkable increase of 77.15%. This surge in stock price underscores the company's growing influence in the cloud sector and its successful strategy in expanding its customer base and product offerings.

In other recent news, Nutanix has seen a positive outlook from several analysts. Oppenheimer set a target of $80 on Nutanix's stock, citing the company's potential to outperform key competitors and benefit from the growing demand for infrastructure that supports artificial intelligence applications. Morgan Stanley (NYSE:MS) upgraded Nutanix's stock from Equal-weight to Overweight, citing potential market share gains from VMware (NYSE:VMW). RBC Capital and JPMorgan (NYSE:JPM) also raised their price targets for Nutanix to $75.

Nutanix's revenue has shown significant growth, with an 11% year-over-year increase in Q4 revenue, totaling $548 million, and a 15% rise in full-year revenue to $2.15 billion. The company's Annual Recurring Revenue (ARR) and Annual Contract Value (ACV) billings also increased by 22% and 21% respectively.

The company has also disclosed the fiscal year 2025 compensation details for its top executives, including a base salary of $800,000 for President and CEO Rajiv Ramaswami. Additionally, Nutanix announced the upcoming retirement of its Chief Operating Officer, David Sangster, effective October 31, 2024. For the fiscal year 2025, Nutanix expects its revenue to be between $2.435 billion and $2.465 billion, with non-GAAP operating margins ranging from 15.5% to 17%.

InvestingPro Insights

Nutanix's recent stock performance aligns with several key metrics and insights from InvestingPro. The company's impressive 77.15% return over the last year is complemented by strong short-term momentum, with InvestingPro data showing a 18.82% return over the last month and a 37.17% return over the last three months. This upward trajectory is further supported by Nutanix trading near its 52-week high, with the current price at 99.31% of its peak.

InvestingPro Tips highlight Nutanix's impressive gross profit margins, which are reflected in the data showing a gross profit margin of 84.94% for the last twelve months as of Q4 2024. This strong profitability metric suggests efficient cost management and pricing power in the competitive cloud computing market.

Despite the company not being profitable over the last twelve months, InvestingPro Tips indicate that net income is expected to grow this year, and analysts predict the company will be profitable this year. This positive outlook aligns with the company's revenue growth of 15.35% over the last twelve months and an adjusted operating income of $25.83 million.

For investors seeking more comprehensive analysis, InvestingPro offers 13 additional tips for Nutanix, providing a deeper understanding of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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