NetApp Shares Dip Despite Earnings Beat as Cloud Growth Faces Scrutiny
NetApp (NTAP) shares fell 0.21% in a session where the S&P 500 rallied, underscoring investor skepticism toward the data storage firm’s hybrid cloud strategy despite solid quarterly results. The company’s $1.71 billion Q2 revenue (up 3% YoY) and $2.05 adjusted EPS outperformed expectations, but cautious guidance weighed on sentiment.
Enterprise demand for hybrid cloud infrastructure remains NetApp’s Core growth driver, with analysts noting its $23 billion market cap reflects entrenched corporate relationships. Yet the stock’s underperformance signals concerns about execution risks in a competitive cloud services sector dominated by hyperscalers.