Shares of NetApp (NTAP -2.46%) shed 17.8% of their value in August, according to data from S&P Global Market Intelligence. The stock tumbled after the enterprise data services company cut its first-quarter sales and profit outlook and lowered its full-year sales growth guidance.
Full Answer
Why is NetApp stock dropping?
It's Facing Margin Headwinds. NetApp NTAP –2.46% shares were declining on Thursday after the data-sharing software company's margin forecasts for the fourth quarter and fiscal 2022 were lower than expected.
Is NetApp a good stock to buy?
NetApp has received a consensus rating of Buy. The company's average rating score is 2.52, and is based on 12 buy ratings, 8 hold ratings, and 1 sell rating.
Will netapp stock go up?
Based on our forecasts, a long-term increase is expected, the "NTAP" stock price prognosis for 2027-05-26 is 103.662 USD. With a 5-year investment, the revenue is expected to be around +44.08%. Your current $100 investment may be up to $144.08 in 2027. Get It Now!
What happened
Shares of NetApp ( NASDAQ:NTAP) shed 17.8% of their value in August, according to data from S&P Global Market Intelligence. The stock tumbled after the enterprise data services company cut its first-quarter sales and profit outlook and lowered its full-year sales growth guidance.
So what
While the company had stated in May that it expected sales for the year to grow at the low end of the mid-single-digit range, NetApp's preliminary first-quarter results arrived with news that annual revenue is poised to fall between 5% and 10%.
Now what
NetApp stock has regained some ground in September. The company's share price is up 13.4% in the month's trading so far, and appears to have benefited from executive vice president and chief financial officer Ron Pasek's presentation at the Citi Global Technology Conference on Sept. 5.