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Conclusion on Pure Storage Inc (NYSE:PSTG) Stock

Pure Storage Inc. (NYSE:PSTG) historical revenue is growing faster than it's peers and shows how they are leading their competition.

Risks lie in the company not yet making profit and the possibility that the disruptor itself may be disrupted by someone else, with a newer and better technology, in the future. 

 

Gartner Research’s view on Pure Storage Inc.

Gartner quotes, “As flash costs continue to lower, Pure Storage will disrupt the file and object storage market in the same way that the Pure Storage block protocol storage arrays disrupted the traditional hybrid array market by offering storage that is easier to purchase, own and upgrade, and that is faster, smaller and simpler to use. Pure Storage has grown its business, but is still not profitable. Nevertheless, a growing partnership with Cisco, which involves Pure Storage providing the storage for converged system solutions and competitive trade-in schemes, such as the EMC XtremIO Rescue and storage-as-a-service programs, will help Pure Storage to get into more solution-oriented accounts. These partnerships and offerings also enable Pure Storage to grow and compete in projects that were previously inaccessible.” Let's take a look at Pure Storage (NYSE:PSTG) balance sheet. 





 

Conclusion

Pure Storage Inc. (NYSE:PSTG) is in the booming solid state storage sector with a CAGR of 29%. The company is clearly an industry innovator and leader, with rapidly growing revenues and shrinking net losses expected to turn into profits around 2029/2020. If Pure Storage is able to continue to grow their client base and become highly profitable, then they will soon grow into their lofty valuation (Enterprise Value of US$3.2b). 

Competitive threats and declining solid state memory prices are the negative forces, fighting against a growing sector and economies of scale.

Analysts rate the stock an outperform. I would rate them a speculative buy on dips.