Would You Have Held NetApp Stock All The Way Up?
For questions about this article or underlying research, email help@trefis.com.
A $10,000 investment in NetApp (NTAP) stock grew to $65,318 over the past ten years before dividends. The same capital in the S&P 500 reached $35,820. In hindsight, deciding to buy looks like the only question, but the harder test was holding on. How many times do you think NetApp stock fell 20% or more on the way up?
How Often Did NetApp Stock Fall?
Over the past ten years, NetApp stock fell 20% or more three times, with each decline ultimately exceeding 30%.
| High | Low | NetApp stock | S&P 500, same dates | Back above the old high |
|---|---|---|---|---|
| Sep 2018 | Mar 2020 | -59.8% | -22.8% | Aug 2021 |
| Jan 2022 | Dec 2022 | -39.1% | -18.8% | Mar 2024 |
| Jul 2024 | Apr 2025 | -43.5% | -9.9% | May 2026 |
Falls of 20% or more from a closing high, Oct 2016 to Oct 2026. Split-adjusted closing prices, dividends excluded.
The deepest drop stretched from September 2018 to March 2020, a period when the stock lost 59.8% and the S&P 500 fell 22.8%. Shareholders then waited another 17.2 months after that low until August 2021 before NetApp again closed above its September 2018 high.
What Did Holding NetApp Through A Fall Feel Like?
The most recent downturn began in July 2024 and lasted 8.8 months. At the April 2025 low, the position was down 43.5%. The stock then took another 13.6 months, until May 2026, to finally close above its July 2024 high.
Every one of NetApp’s declines eventually ended. Yet an investor holding shares at the April 2025 low had no way to know that this drop would reverse, or when.
Was Something Wrong With NetApp’s Business?
NetApp’s twelve-month revenue fell during only one of the three stock declines, which was the deepest. The company sells data storage primarily through its Hybrid Cloud business, a segment accounting for 90.1% of revenue in fiscal 2026. The rest came from Public Cloud, encompassing storage services sold in the public cloud.
During that deepest drop, twelve-month revenue was 7.7% lower at the March 2020 low than at the September 2018 high. The operating margin barely shifted over the same period, edging from 17.7% to 17.2%. The business weakened only slightly, yet the stock dropped far more than revenue did.
The 2024 downturn unfolded differently. Twelve-month revenue at the April 2025 low was 3.8% higher than at the July 2024 high, and the operating margin climbed from 20.2% to 21.5%. The business remained solid by both measures, so the 43.5% drop did not come from weaker revenue or margins.
What Selling NetApp Stock Would Have Cost
NetApp stock has gained 528.2% since its March 2020 low, and anyone who sold at the bottom missed the entire rally. Today, the shares trade 7.1% below the highest close of the ten years, which occurred on October 12, 2026.
These severe drops served as the cost of admission for NetApp’s overall gain, and only investors who sat through all three captured the full ten-year return. The next time NetApp stock drops sharply, compare the decline against its twelve-month revenue. In the 2018 to 2020 downturn, the stock fell far more than revenue did. In the 2024 decline, revenue actually grew. Both times, the stock eventually closed above its prior high.
Is Too Much Of Your Wealth Riding On One Stock?
NetApp holders who stayed for the gain also sat through the falls. When one position grows into a large part of your wealth, a sharp fall can hurt your whole plan, and selling to spread the money out can bring a large tax bill. Our partner advisory firm offers a free strategy review of ways to protect a concentrated position and unwind it with less tax.
Request A Free Strategy Review
Spot an error or want more like this? Tell us in 10 seconds.