ADVFN - Advanced Financial Network.
HOME» NASDAQ » N » NTAP Stock Price » NTAP Stock News

Netapp Share News

 Netapp (mm) Stock Price
NTAP Stock Price
 Netapp (mm) Stock Chart
NTAP Stock Chart
 Netapp (mm) Stock News
NTAP Stock News
 Netapp (mm) Company Information
NTAP Company Information
 Netapp (mm) Stock Trades
NTAP Stock Trades

NetApp's Cautious Commentary Sparks Fears Of Sector Slowdown

By Shara Tibken Of DOW JONES NEWSWIRES NEW YORK -(Dow Jones)- Tech stocks sold off more than the broader market Thursday after NetApp Inc.'s (NTAP) weak sales and cautious commentary raised further concerns about the entire data-center sector and other companies exposed to federal spending. NetApp on Wednesday said the weak U.S. economy weighed on its federal and financial services businesses, cutting into the Sunnyvale, Calif., storage maker's fiscal first-quarter revenue growth and second-quarter guidance. The company said business softened "dramatically" in July under the weight of the debt-ceiling crisis and macroeconomic uncertainty. "The trajectory weakened as the last month [of our quarter] was roughly half the growth rate of the first, causing us to come in lower than where we had anticipated," Chief Executive Tom Georgens said. "Economic conditions remain uncertain, but they are clearly different than they were 90 days ago." That caution led to worries about the rest of the sector. Many data-center companies reported strong results for their most-recently ended quarters, but most concluded a month before NetApp said it started seeing weakness and before macroeconomic worries accelerated. NetApp shares recently tumbled 20% to $33.51, the biggest decliner in the S&P 500. Rival EMC Corp. (EMC) also sank, down 10% to $20.19, and data warehousing provider Teradata Corp. (TDC) fell 9.8% to $47.23. Networking-related stocks trading lower included Cisco Systems Inc. (CSCO), down 5%, and Riverbed Technology Inc. (RVBD), down 16%. F5 Networks Inc. (FFIV) dropped 9.5% and Juniper Networks Inc. (JNPR) slid 6.6%. Enterprise software companies also declined, including Citrix Systems Inc. (CTXs), down 9.3%; VMware Inc. (VMW), down 11%; and Salesforce.com Inc. (CRM), down 6.5%. Disk-drive makers Western Digital Corp. (WDC) and Seagate Technology Inc. (STX) also were among the steepest decliners, with S&P Equity noting demand for hard-disk drives has deteriorated. In all, the Morgan Stanley Technology index fell 5.9%, worse than the approximately 4% declines in the S&P 500 and Dow Jones Industrial Average. NetApp and similar companies have posted strong growth in recent quarters because of the increasing need for space to store data as well as the move to cloud computing and virtualization, which makes data centers more efficient by running multiple computers' operations on a single server. But macroeconomic worries are causing customers to be more cautious with spending. NetApp hasn't been alone in voicing recent caution. Dell Inc. (DELL), which provides storage and servers along with PCs, on Tuesday lowered its outlook for the full year on slowing sales to consumers and the U.S. government. The company, whose quarter ended July 29, said it saw some softness during the last month of its second quarter and moving into the third. And Brocade Communications Systems Inc. (BRCD) earlier this month cut its guidance for its fiscal third quarter amid weaker sales at its storage business. Its shares recently were off 7.8% to $3.44. "It has become difficult to dismiss mounting evidence that industry fundamentals for IT hardware have materially changed in the last 45 days, with shortfalls in the last two weeks alone by Brocade, Dell and NetApp," Pacific Crest analyst Brent Bracelin said as he cut his rating on several IT systems and networking companies. "The NetApp shortfall was particularly worrisome because of the magnitude and rapid deceleration in order growth rates that were cut in half in July relative to May," he added. -By Shara Tibken, Dow Jones Newswires; 212-416-2189; shara.tibken@dowjones.com

Stock News for Netapp (NTAP)
DateTimeHeadline
11/09/201406:17:27MARKET SNAPSHOT: Retail Earnings To Test Those Consumer Sentiment...
10/27/201416:57:53NetApp Acquires SteelStore Line From Riverbed for $80 Million
10/08/201410:58:39Elliott Management Urges EMC to Spin Off VMware--Update
06/30/201409:34:43U.S. Hot Stocks: Hot Stocks To Watch
05/23/201416:27:32IBM to End Its Sales of NetApp Storage Technology -Bloomberg
05/22/201409:20:05U.S. Hot Stocks: Hot Stocks to Watch
05/21/201417:26:17NetApp Profit Rises on Lower Expenses
04/07/201417:00:22TECH STOCKS: Netflix, Facebook Among The Few Tech Gainers
04/07/201409:55:50U.S. Hot Stocks: Hot Stock to Watch
03/24/201415:34:51MARKET SNAPSHOT: Stocks Fall; Nasdaq Set For Biggest Loss In...
03/13/201416:35:53TECH STOCKS: Amazon A Rare Tech Gainer After Prime Price Hike
03/13/201413:40:16TECH STOCKS: Amazon's Prime Hike Pays Off In Stock Price
03/12/201418:00:10NetApp to Cut 600 Jobs in Restructuring
02/18/201419:34:29Crossroads Files Patent-Infringement Complaint
02/13/201411:31:19TECH STOCKS: Cisco's Losses Fail To Drag Down Tech Stocks
02/12/201417:05:21NetApp Profit Rises 22% on Lower Costs
02/12/201410:57:39TECH STOCKS: Cisco Among Tech Gainers With Earnings On Tap
11/15/201309:18:03OZ Management LP 3Q 13F: Largest Eliminations
11/15/201309:13:37Maverick Capital Ltd. 3Q 13F: Holdings As Of Sep 30
11/15/201309:13:26Maverick Capital Ltd. 3Q 13F: Largest Sales

Netapp and other NASDAQ stock quotes are delayed by at least 20 minutes.
All other stock price and quote data is delayed by at least 15 minutes unless otherwise stated. By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
Contact Us | Copyright 1999-2007 ADVFN PLC. | Privacy Policy | Investment Warning | Data accreditations | Investor Relations

ADVFNADVFN ItalyADVFN GermanyADVFN FranceADVFN BrazilADVFN JapanADVFN UKADVFN US noad