No. of Recommendations: 1
The valuation is ridiculously low at 2.4x EV/S (assumes $17/share).

Yes, there is a huge disconnect between the fundamentals and the stock price. The "miss" was minimal and the sell off outsized. PSTG continues to see 28-30% annual revenue growth currently and in the foreseeable future. They continue to take market share and their long term growth outlook remains superb.

I see some discussion here about a possible "down cycle" and other guesses about the disconnect. But the expert opinion I've been reading all along indicates none of this true. This seems to be a simple case where the market is getting it wrong. In the meantime, many stocks are getting overvalued due to momentum.

But there is always a chance that there are unknown negatives and the insider "smart money" is bringing this down for a reason. The expert opinion may be wrong. I'm not eager to catch a "falling knife."

I have most of my money in high-flying overvalued likely momentum stocks, also with strong fundamentals but getting really really pricey. I'm not eager to chase these momentum stocks.

So I'm staying put on PSTG but not adding more.
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