After releasing a great earnings report late yesterday, Nutanix Inc (NASDAQ: NTNX) hit the ground running with yet another positive release. The company announced the launch of its Xi Cloud Services, exciting investors and sending the stock screaming for the top. Today, we’ll talk about:
- The launch;
- what we’re seeing from NTNX as a result; and
- what we’ll be watching for with regard to the stock ahead.
NTNX Announces Service Launch
As mentioned above, Nutanix was already bound to start the day of on a strong note today after beating both revenue and earnings expectations late yesterday. However, to add another reason to be excited, the company announced the availability of a new service.
Xi Cloud Services by NTNX, is a new suite of offerings that is designed to create a more unified fabric across different cloud environments. Essentially, the comapny says that the service gives IT teams the freedom to run their applications on the optimal platform, unrestricted by technology limitations.
In the release, the company said that Xi Cloud Services is built of five distinct offerings. The flagship of these offerings is Xi Leap, a native extension of the Nutanix Enterprise Cloud Platform that provides disaster recovery as a service.
In a statement, Dr. Gary Mattei, Director of Technology at Avon Grove, had the following to say about the NTNX launch of Xi Leap:
DR is deceptively difficult and yet critical for any IT organization to manage perfectly so essential data is not lost… Nutanix Xi Leap solves all of these challenges for us, allowing us to upload our data directly into the DR solution while providing a single view across our entire infrastructure. Xi Leap gives us confidence that our data is safe no matter what happens.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to invest is that the news leads to moves in the market. In the case of NTNX, the news proved to be overwhelmingly positive. After all, the launch of this new service gives the company yet another stream of income and opportunity for revenue growth. So, it’s not surprising that after reporting positive earnings and announcing the launch of this service, the stock is climbing. As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (12:58), NTNX is trading at $44.44 per share after a gain of $3.47 per share or 8.46% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the iWatch Markets team will continue to keep a close eye on NTNX. In particular, we’re interested in following the story surrounding the company’s continued growth as well as the revenue generated by the launch of the Xi Cloud Services Product. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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