NTAP Hits 20-Day Low Amid Earnings Anticipation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy NTAP?
Source: Fool
Shares of NetApp (NTAP.O) closed at $106.82 today, down 2.39%, marking a significant downturn as the stock hit a 20-day low. This decline comes as NTAP has underperformed the S&P 500, with an 8.09% loss over the past month, contrasting sharply with a 1.64% gain in the tech sector.
The technical breakdown signals increased bearish momentum, raising concerns among investors ahead of the company's upcoming earnings report scheduled for November 25, 2025. Analysts expect an EPS of $1.89 and revenue of $1.69 billion, reflecting modest growth from the previous year. Despite a Zacks Rank of #3 (Hold) and a favorable valuation with a Forward P/E of 14.09, the stagnant EPS estimates over the past month have contributed to the stock's recent struggles.
As the market awaits the earnings announcement, investor sentiment remains cautious, influenced by the recent performance and broader market trends.
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Analyst Views on NTAP
Wall Street analysts forecast NTAP stock price to rise
19 Analyst Rating
6 Buy
13 Hold
0 Sell
Moderate Buy
Current: 101.070
Low
110.00
Averages
124.21
High
137.00
Current: 101.070
Low
110.00
Averages
124.21
High
137.00
About NTAP
NetApp, Inc. is an intelligent data infrastructure company combining unified data storage, integrated data, operational and workload services. It creates silo-free infrastructure, harnessing observability and AI to enable data management. Its operational and workload services provide continuous optimization of performance and efficiency for infrastructure and workloads through observability and AI. Its Hybrid Cloud segment provides a unified data storage portfolio of storage management and infrastructure solutions that helps customers modernize their data centers. Hybrid Cloud includes software, hardware, and related support, along with professional and other services. Its Public Cloud segment offers a portfolio of products delivered primarily as-a-service, including related support. This portfolio includes cloud storage, data services and operational services. These solutions and services are available in the public clouds, including Amazon AWS, Microsoft Azure, and Google Cloud.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Analysis of NetApp's Dividends and Options Trading
- Dividend History Analysis: The dividend history chart for NetApp, Inc. indicates that while dividend amounts are unpredictable, the recent dividend may sustain a 2% annualized yield, reflecting the company's profitability fluctuations.
- Volatility Assessment: With a trailing twelve-month volatility of 38% calculated from the last 251 trading days, investors can better evaluate the risk-reward profile, particularly when considering selling covered calls at the $115 strike price.
- Options Market Dynamics: On Wednesday afternoon, the put volume among S&P 500 components reached 1.16 million contracts, while call volume hit 2.26 million, resulting in a put-call ratio of 0.51, indicating a significant preference for calls among investors.
- Options Trading Trends: Compared to the long-term median put-call ratio of 0.65, the current high call volume suggests a bullish market sentiment, with investors increasingly favoring call options in their trading strategies.
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- Weak Component Stocks: Within the ETF, Netapp shares fell about 8.4% and MMM shares dropped around 8%, suggesting that the poor performance of these stocks may further drag down the ETF's overall returns, influencing investor decisions.
- Market Sentiment Fluctuation: Given the uncertainty in the overall market, investors may adopt a cautious stance towards leveraged ETFs, leading to decreased liquidity for the Direxion ETF and impacting its future trading activities.
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Analysis of NetApp's Dividends and Options Trading
- Dividend History Analysis: The dividend history chart for NetApp, Inc. indicates that while dividend amounts are unpredictable, the recent dividend may sustain a 2% annualized yield, reflecting the company's profitability fluctuations.
- Volatility Assessment: With a trailing twelve-month volatility of 38% calculated from the last 251 trading days, investors can better evaluate the risk-reward profile, particularly when considering selling covered calls at the $115 strike price.
- Options Market Dynamics: On Wednesday afternoon, the put volume among S&P 500 components reached 1.16 million contracts, while call volume hit 2.26 million, resulting in a put-call ratio of 0.51, indicating a significant preference for calls among investors.
- Options Trading Trends: Compared to the long-term median put-call ratio of 0.65, the current high call volume suggests a bullish market sentiment, with investors increasingly favoring call options in their trading strategies.
See More
Microsoft and Others Near Death Cross, Indicating Potential Weakness
- Death Cross Risk: Microsoft's 50-day moving average at $482.65 is perilously close to its 200-day average of $482.96, indicating potential downside risk that could undermine investor confidence and affect stock performance.
- Market Volatility: U.S. equities faced significant fluctuations amid Trump's push to acquire Greenland, with a sharp drop on Tuesday followed by a rebound on Wednesday after he ruled out military intervention, highlighting market sentiment instability.
- Paramount Skydance Lawsuit: Paramount Skydance's 50-day moving average of $14.03 is nearing its 200-day average of $13.91, and the company has initiated a lawsuit against Warner Bros. Discovery as part of a hostile takeover plan, potentially increasing market uncertainty.
- NetApp Downgrade: Morgan Stanley downgraded NetApp from equal weight to underweight due to rising component costs and softer tech spending, resulting in a 22% decline in the stock over the past 12 months, reflecting challenges faced by the industry.
See More
S&P 500 Drops 2.06% to One-Month Low Amid Geopolitical Tensions
- Market Turmoil: The S&P 500 index fell by 2.06% and the Nasdaq 100 by 2.12%, both hitting one-month lows, reflecting a risk-off sentiment driven by rising geopolitical tensions over Greenland, which could further weaken investor confidence.
- Rising Bond Yields: The 10-year Treasury yield surged to 4.31%, the highest in 4.75 months, primarily driven by concerns over Fed independence, which may pressure the stock market and affect investor appetite for risk assets.
- Gold and Silver Surge: Gold and silver prices soared to all-time highs due to safe-haven buying prompted by the Greenland crisis, boosting the stock prices of related mining companies, indicating a shift towards secure assets in uncertain market conditions.
- Natural Gas Stocks Rally: U.S. natural gas-producing stocks surged over 26% to a three-week high, demonstrating that amidst market turmoil, energy stocks can still attract investor interest, potentially providing support for future market recovery.
See More
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- Market Reaction: The S&P 500 fell 1.5% to 6,840 points due to Trump's aggressive trade stance towards Europe, marking its worst session since late November, primarily dragged down by consumer discretionary and technology stocks.
- Tariff Threats: Trump threatened to impose a 10% tariff on several European countries starting February 1 if negotiations over Greenland control fail, with potential increases to 25% by June, which could impact up to 25% of U.S. exports to Europe, leading to cautious market reactions.
- Fixed Income Volatility: Long-dated Treasury yields climbed to their highest levels since late September, with the 30-year yield rising 6 basis points to 4.90%, reflecting a risk-off sentiment among investors.
- Precious Metals Surge: Safe-haven demand pushed gold prices up 1.9% to $4,760 per ounce and silver nearly 5% to $94.50 per ounce, indicating market concerns over economic uncertainty.
See More
S&P 500, Dow, and Nasdaq Drop to Two-Week Lows Amid Rising Geopolitical Tensions
- Market Decline: The S&P 500 index fell by 1.23%, the Dow Jones Industrial Average dropped by 1.07%, and the Nasdaq 100 decreased by 1.36%, all reaching two-week lows, reflecting investor concerns over escalating geopolitical tensions.
- Tariff Threats: President Trump announced a 10% tariff on goods from eight European countries starting February 1, escalating to 25% in June unless a deal for the purchase of Greenland is reached, potentially exacerbating trade tensions and impacting market confidence.
- Rising Bond Yields: The 10-year Treasury note yield surged to 4.31%, a 4.75-month high, driven by concerns over an independent Fed and negative sentiment from soaring Japanese government bond yields, which may undermine confidence in U.S. debt.
- Natural Gas Stocks Surge: U.S. natural gas-producing stocks soared over 22% to a three-week high as natural gas prices surged, indicating strong investment appeal in energy stocks amid a volatile market environment.
See More
Direxion Daily S&P 500 Bull 3X ETF Drops 3.3%, Netapp and MMM Underperform
- ETF Performance: The Direxion Daily S&P 500 Bull 3X ETF is down approximately 3.3% in Tuesday afternoon trading, indicating a decline in investor confidence that could affect risk appetite in the market.
- Weak Component Stocks: Within the ETF, Netapp shares fell about 8.4% and MMM shares dropped around 8%, suggesting that the poor performance of these stocks may further drag down the ETF's overall returns, influencing investor decisions.
- Market Sentiment Fluctuation: Given the uncertainty in the overall market, investors may adopt a cautious stance towards leveraged ETFs, leading to decreased liquidity for the Direxion ETF and impacting its future trading activities.
- Investor Focus Shift: As market volatility increases, investors may reassess their strategies for high-risk assets, and the performance of the Direxion ETF could prompt a shift towards more stable investment options.
See More
