NTNX Stock Falls -22% With A 7-day Losing Spree On Barclays Downgrade
Nutanix (NTNX) – a enterprise cloud platform offering virtualization, storage, and networking services – hit 7-day losing streak, with cumulative losses over this period amounting to a -22%. The company market cap has crashed by about $3.2 Bil over the last 7 days, and currently stands at $11 Bil.
The stock has YTD (year-to-date) return of 19.6% compared to 0.4% for S&P 500. This calls for a re-evaluation of the stock’s valuation to find out whether this is an opportunity, or a trap.
What Triggered The Slide?
[1] Barclays Downgrade to ‘Equal-Weight’
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- Intel Stock Shares $92 Bil Success With Investors
- Price target cut to $53 from $64
- Concerns over slower market share gains against VMware
- Impact: Accelerated Selling Pressure, Negative Institutional Sentiment
[2] Broad-Based Analyst Target Cuts & Downgrades
- Morgan Stanley downgrade to ‘Equal-Weight’
- Q1 revenue miss and lowered full-year guidance reiterated
- Impact: Eroded Investor Confidence, Technical Breakdown Below Moving Averages
Opportunity or Trap?
Below is our take on valuation.
There are only a couple of things to fear in NTNX stock given its overall Strong operating performance and financial condition. Considering stock’s Moderate valuation, we think it is Attractive (For details, see Buy or Sell NTNX).
But here is the real interesting point.
You are reading about this -22% move after it happened. The market has already priced in the news. To avoid the next loser before the headlines, you need predictive signals, not notifications. Our High Quality Portfolio has a risk model designed to reduce exposure to losers.
Returns vs S&P 500
The following table summarizes the return for NTNX stock vs. the S&P 500 index over different periods, including the current streak:
| Return Period | NTNX | S&P 500 |
|---|---|---|
| 1D | -3.8% | 1.2% |
| 7D (Current Streak) | -22.3% | -1.3% |
| 1M (21D) | -18.0% | 1.5% |
| 3M (63D) | -39.1% | 2.1% |
| YTD 2026 | -19.6% | 0.4% |
| 2025 | -15.5% | 16.4% |
| 2024 | 28.3% | 23.3% |
| 2023 | 83.1% | 24.2% |
Take a look at what history tells you about whether past dips like this have been buying opportunities or traps: NTNX Dip Buyer Analysis.
Gains and Losses Streaks: S&P 500 Constituents
There are currently 28 S&P constituents with 3 days or more of consecutive gains and 34 constituents with 3 days or more of consecutive losses.
| Consecutive Days | # of Gainers | # of Losers |
|---|---|---|
| 3D | 11 | 12 |
| 4D | 4 | 13 |
| 5D | 4 | 2 |
| 6D | 2 | 2 |
| 7D or more | 7 | 5 |
| Total >=3 D | 28 | 34 |
Key Financials for Nutanix (NTNX)
Last 2 Fiscal Years:
| Metric | FY2024 | FY2025 |
|---|---|---|
| Revenues | $2.1 Bil | $2.5 Bil |
| Operating Income | $7.6 Mil | $172.5 Mil |
| Net Income | $-124.8 Mil | $188.4 Mil |
Last 2 Fiscal Quarters:
| Metric | 2025 FQ4 | 2026 FQ1 |
|---|---|---|
| Revenues | $653.3 Mil | $670.6 Mil |
| Operating Income | $31.2 Mil | $49.3 Mil |
| Net Income | $38.6 Mil | $62.1 Mil |
The losing streak NTNX stock is currently on doesn’t inspire much confidence among investors. In contrast, Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.