NetApp (NTAP) Falls On 4Q Earnings, Cycles Point Lower

netapp earnings weak stock research bearish ntap investing outlook may 24

NetApp (NTAP) Stock Weekly Chart 

NetApp (NTAP) fell 8% on Thursday, after the company posted earnings that missed Wall Street expectations. 

We believe the stock faces more downside risk in the coming weeks as the current market cycle comes to a close.

The company reported earnings per share of $1.22 and total revenue of $1.59 billion, compared to analyst estimates of $1.26 and $1.65 billion. For this quarter, management expects revenue of $1.315-1.465 billion compared to the average estimate of $1.48 billion.

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CEO George Kurian was frank in his assessment, “This is not how I’m used to showing up, and we’re taking concrete actions to quickly address the issue. Our opportunity is large and growing, but we need to do more to capture it.”

Our analytical framework focuses on market cycles for stocks and commodities. We see NTAP as in the final declining phase for its current cycle. We believe a bottom is due in the next 2-3 weeks. However, the depth of the drop says sell the next rally.

For more from Slim, or to learn about cycle analysis, check out the askSlim Market Week show every Friday on our YouTube channel.

Twitter:  @askslim

Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.