Why Pure Storage’s Debut Failed To Impress

(This story first appeared on Seeking Alpha (SA) earlier today, and was written by Alessandro Pasetti, the founder of Hedging Beta.)

Summary

  • The tech sector needs a confidence boost, but those in the bear camp have been proved right so far.
  • Stretched valuations and risk-off trades suggest it won’t be a very nice ride for Pure Storage, although the business is truly attractive.
  • Several metrics indicate that investors should look for value elsewhere and that other IPOs in the pipeline could be pulled.

The tech sector needed a confidence boost and the IPO of Pure Storage (NYSE: PSTG) was meant to be great news this week.

Unfortunately, those in the bear camp were right, at least judging by its performance in early trade on its debut on Wednesday, when the shares fell below their IPO price, as of this writing.

It’s still early days to determine fair value, but here are a few things you ought to consider if you are invested or if you plan to invest in its shares.

Do you want to know more?

If you want to read the full article, please click here.

2
Leave a Reply

2 Comment threads
0 Thread replies
0 Followers
 
Most reacted comment
Hottest comment thread
2 Comment authors
  Subscribe  
newest oldest most voted
Notify of

This is interesting, do you have any more information on any of this at all