Nutanix stock falls after J.P. Morgan warns that software shift could prove disruptive
Shares of @Nutanix Inc. #NTNX, -0.66% dropped 5% in premarket trading Thursday after analysts at @JP Morgan downgraded the stock to underweight on concerns that shares could lag those of peers in the near future following a recent rally. Shares of @BlackLine Inc. #BL, +0.81% fell 2% and shares of @Talend S.A. TLND, +5.64% slipped 1.9%, also on downgrades to underweight. The analysts, led by @Mark Murphy, think that Nutanix’s transition to a more software-oriented model could “create near-term business disruption” given that it will require operational adjustments. A change to the company’s sales leadership team might also be disruptive, he argued. BlackLine, meanwhile, could see its revenue growth decelerate to below 30%, whereas it has been in the mid-40%s lately. Regarding Talend, Murphy believes that a quota capacity shortage may hurt billings growth for most of 2018. Nutanix shares have gained 15% over the past 12 months, though the stock price has more than doubled from its 52-week low. BlackLine shares are up 22% over the past 12 months, while Talend shares have risen 73% and the S&P 500 SPX, +1.18% has gained 23%.