Pure Storage Stock Drop Looks Sharp, But How Deep Can It Go?
Pure Storage (PSTG) stock is down 27.3% in a day. The recent slide reflects renewed concerns around Pure Storage’s future margins and high valuation, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Pure Storage stands today.
- Size: Pure Storage is a $23 Bil company with $3.4 Bil in revenue currently trading at $68.85.
- Fundamentals: Last 12 month revenue growth of 11.3% and operating margin of 2.3%.
- Liquidity: Has Debt to Equity ratio of 0.01 and Cash to Assets ratio of 0.38
- Valuation: Pure Storage stock is currently trading at P/E multiple of 135.5 and P/EBIT multiple of 99.9
- Has returned (median) 11.1% within a year following sharp dips since 2010. See PSTG Dip Buy Analysis.
These metrics point to a Moderate operational performance, alongside High valuation – making the stock Unattractive. For details, see Buy or Sell PSTG Stock
That brings us to the key consideration for investors worried about this fall: how resilient is PSTG stock if markets turn south? This is where our downturn resilience framework comes in. Suppose PSTG stock falls another 20-30% to $48 – can investors comfortably hold on? Turns out, the stock has fared worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
2022 Inflation Shock
- PSTG stock fell 41.1% from a high of $28.90 on 12 February 2021 to $17.03 on 12 May 2021 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 24 November 2021
- Since then, the stock increased to a high of $98.70 on 2 November 2025 , and currently trades at $68.85
| PSTG | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -41.1% | -25.4% |
| Time to Full Recovery | 196 days | 464 days |
2020 Covid Pandemic
- PSTG stock fell 55.6% from a high of $19.74 on 12 February 2020 to $8.76 on 18 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 24 November 2020
| PSTG | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -55.6% | -33.9% |
| Time to Full Recovery | 251 days | 148 days |
2018 Correction
- PSTG stock fell 54.6% from a high of $28.66 on 11 September 2018 to $13.01 on 5 August 2019 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 11 February 2021
| PSTG | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -54.6% | -19.8% |
| Time to Full Recovery | 556 days | 120 days |
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