Nutanix Stock Collapsing, Executives Bailing on the Company



  • Nutanix, long the anti-thesis of profitable, is growing and growing but not making profits. Investors are getting scared and in last month's trading, the company suddenly saw close to a third of its market capitalization wiped away as stock market value plummeted. In the last few weeks a few major executives have exited the company, leading investors and market analysts to worry that things are not going well and that the insiders know that it is time to get out.

    Nutanix has been struggling for a while, facing the problem that they are not profitable neither as a whole nor on a per-sale basis. So simple growth is not enough to bring them into the black - and they are nowhere near the black.

    And the overnight losses are nothing compared to the slide in their share values over the last several months which have seen the stocks fall from around $45 per share to around $14.

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    https://www.fool.com/investing/2017/04/05/how-nutanix-inc-fell-37-in-march.aspx

    Are we seeing the end of Nutanix? With stock performance like this, investors will be in short supply and without profitability, Nutanix is desperately in need of cash injections from investors to keep the company running along and that creates fear from customers who should be very wary of a platform that lacks a long term support guarantee and empowers customers that don't outright free to press for far lower or even negative margin sales (something seen already) making the company struggle even more to find profits.


  • Service Provider

    Look at those sudden Q1 losses, wowzers! Q2 only doesn't look like a total disaster because it is so dwarfed by Q1. Ignore Q1 and the stat of things looks even worse. It looks like growth is tapering off while losses are spiraling out of control.



  • what's wrong with nutanix products? I live in a too small env for nutanix so I'm curious to listen from those how can be actual potential customers.

    (side note: never understood stock exchange logic: how stock value can impact on the company bank account?!)



  • I jut got asked if I'd be interested in a Nutanix build, to which I almost laughed.

    Horror stories for support and then this. . . yeah they aren't an option.



  • How the hell does a company manage to sell more than 100mil$ worth of product and absolutely hemorrhage money. Does this take a special talent or something? Good grief.



  • @MattSpeller Happens all the time. TSLA lost 330Million on revs of 2.7Billion. For years Amazon lost money on revs in the tens of billions. For many companies in growth phase losing tons of money every year or quarter just happens with growth. You expect them to right the ship in the future if you invest.



  • I have heard time and again that Nutanix gear has a much higher price point than its competitors. I've never actually had it quoted, however. Maybe that was the VMware fan boy in me.


  • Service Provider

    @NetworkNerd said in Nutanix Stock Collapsing, Executives Bailing on the Company:

    I have heard time and again that Nutanix gear has a much higher price point than its competitors. I've never actually had it quoted, however. Maybe that was the VMware fan boy in me.

    And performance issues.



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