So 2H18 sales (MW) were slow, relative to expectations and hype and consequently the market has got the wobbles with the stock, getting down to a low of $6.50 yesterday.
However, 2H18 sales were called out by NXT as almost entirely enterprise related (Rack Ready = high margin). Win.
Notwithstanding slow 2H18 sales, NXT still coasted across the line beating its own upgraded FY18 Guidance and FY18 Analyst Consensus Estimates, plus FY19 Guidance > Consensus. Win.
Why loose faith in NXT when the revenue per unit metrics continue to perform so strongly and hyperscale sales (MW) can drop at anytime??? Remember hyperscale cloud sales typically have a lengthy and complex sales & billing cycle, which is unpredictable by nature (12-18 months to secure sale + 12-24 months to then reach full billings on that sale). Need to think long term.
NXT Price at posting:
$6.70 Sentiment: Buy Disclosure: Held
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