No. of Recommendations: 5
Duma,

I am going to Jim Cramer it here. I think VEEV is vulnerable if their growth rate does not accelerate. NTNX is vulnerable if they do not demonstrate leverage in their business model. Those are things that a tougher market will punish.

Surprisingly both ANET and NVDA thrived in this market. So the market is not just cutting everything down, but it is expecting much better fundamentals to support any kudos.

As we all know, this is just short term anyways and will be forgotten a few weeks from now. But those are my Cramer predictions.

Cramer is on record saying to wait until earnings to get back into NVDA. He is also on record that he is waiting for a pullback in NVDA to invest in it (the pull back that never came some $100 in share price later).

So take it for what it is worth.

Nutanix is in a business transformation period. They are moving from a data center management company to a build your own cloud data center product for the enterprise. So there is some risk here in this transformation. But Nutanix obviously has a large enough base of customers to make this happen.

VMWare still seems to be a formidable competitor. Better in some very important things, not quite as good in other very important things. The details of which I do not know, but this seems to be the case. Further, VMWare has a larger installed base of customers, and larger cloud partner with Amazon. Last I read, Amazon had more market share in the cloud than its next 4 competitors combined (that would be in order of size, MSFT, IBM, Google). Not sure if that statement is completely accurate, but it very would could be.

If Nutanix can demonstrate operating leverage, or can demonstrate gaining marketshare, then even in the present market it will do well.

I am quite happy where I am, but do have new money every month, so will consider Nutanix again as I get around to it (might not be until post-earnings). I just find it hard to move money out away from what I already own So far been a good strategy, but things change and I will stay on top of Nutanix to assess it from time to time.

Tinker
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