NetApp falls after flagging slowdown in cloud storage spending

NetApp

28/08/2025 09:48

** Shares of data storage company NetApp NTAP.O fall nearly 7.2% to $104 in premarket trading

** Co forecast second-quarter revenue marginally ahead of estimates on Wednesday, as enterprises soften spending on cloud-based storage services in an uncertain economy

** J.P.Morgan says NetApp is set to benefit from enterprise datacenter upgrades and early-stage AI projects across multiple customers; maintains an "overweight" stance

     ** "We believe the demand backdrop for storage remains resilient with potential easing of cautious spending from enterprise customers, evidenced in the first half of the calendar year, except for demand within the public sector, which remains challenged," adds brokerage

** For the second quarter, co expects net revenue between $1.615 billion and $1.765 billion; forecast's midpoint of $1.69 billion was slightly above estimates of $1.68 billion, according to data compiled by LSEG

** Stock rated "hold" on average; median PT is $117 - LSEG data

** As of last close, NTAP has fallen ~3.4% this year

 (Reporting by Akriti Shah in Bengaluru)

 ((akriti.shah@thomsonreuters.com))