NetApp continues to rebound as investors absorb the initial disappointment with guidance.
The dilutive impact of the SolidFire deal sets the company up for growth in FY18.
The stock trades at an incredible value after the Q4 plunge.
Similar to a lot of large technology companies, NetApp (NASDAQ:NTAP) remains in a constant transformation loop. The company builds new storage products that struggle to maintain overall revenue levels as legacy products lose steam.
The transformation though continues to leave the stock trading at multi-year lows while the company produces strong free cash flows. Despite weak guidance, the stock is actually bouncing higher on hopes for stability going forward and the possibility of a boost from the purchase of fast growing SolidFire.