The last three months ending December 2018 have been difficult for Nutanix Inc (NASDAQ:NTNX). The firm’s stock price began to tumble in late August, a trend which sustained up to late October. Interestingly, the stock is taking huge beatings even as the firm works hard to regain the lost growth streak.
At the moment, the stock is showing little spurts of positive movements especially after breaching resistance in mid-November. However, the price quickly breached the support it has established. Interestingly, the stock repeated the pattern twice within three weeks that followed.
For investors, this is quite a jittery period as they cannot make solid decisions regarding the stock. For instance, the stock displayed wild fluctuations in strength since late September. As such, it is difficult for investors to decide whether to sell, hold or buy.
However, the 200-day and the 50-day moving averages are firmly establishing resistance 8 dollars apart. In this light, it is fairly clear to the investor that the stock might stay in the red for a longer period.
But before one decides on what to do with the shares, it is prudent to consider the efforts the firm is putting in. This month, the firm made a slew of announcements, all aimed at speaking to the psychology of the equity market. Interestingly, all these announcements are important in terms of strategy and are worth a second look.
Early December, Nutanix Inc entered an agreement with Intel to facilitate the deployment and operation of Nutanix’s enterprise cloud OS software. In particular, the OS software will enable value-added resellers (VARs) and systems integrators (SIs) to deliver Nutanix-standard hardware platforms.
It is interesting to note that this whole program will integrate into Intel Data Centre Block (IDCB). This IDCB falls under an umbrella program that seeks to standardise operations in the niche. Dubbed Nutanix Elevate Technology Alliance Partner Program, it brings together like-minded entities who share the industry’s vision.
General market downturn
The core aim of the new solutions is to enable “a faster time to market for emerging Intel-based technologies.” Further, the Sis and the VARs will be able to support customers while increasing their value-add as they progress. This is to say that customers easily re-design, scale and even implement projects without much hassle. As such, the expansion opportunities for the solutions increase.
This is one aspect of the firm’s strategy that investors should look out for in the coming year. Interestingly, it is safe to say that the stock did not respond to such announcements due to a general market downturn.
This is true to the extent that Nutanix also introduced an enhanced channel charter “to extend opportunities to value-added distributors (VAD) and global systems integrators (GSI) along with additional opportunities for resellers.”
As such, the company could experience one of the best growth streaks in its history. Interestingly, these are the kind of reports that are supposed to make investors drool for a company’s stock. However, like earlier mentioned, the stock market has had a difficult period since November.
Further, the firm notes that the ending year witnessed the highest sales the company made. This is especially true when the firm introduced a range of products. As such, the company achieved significant recognition throughout the industry. Interestingly, analysts agree that Nutanix could be a huge mover in the coming year.
It is safe to say that Nutanix is facing unfair treatment by the equity market. In particular, the market experienced a general drop at a time when the firm’s stock would be grossing high. Therefore, investors should watch out for the coming year as the stock could pick up.