Top AI Data Center Stock 2024 - Is PureStorage (PSTG) Stock Still a Buy?

[@chipstockinvestor]

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[@wm6549]

Thank you! This is one of the best investment channels around.

[@damionbennett6563]

Very strong information as usual

[@chipstockinvestor]

Thanks! Appreciate the watch, even though it isn't a very high interest company. Hope we were able to at least add to your knowledge!

[@rmondave]

The old delayed gratification tactic will allow pstg to sweep in more customers, kudos to Charlie G. Will see if you point out the two other gems pstg has: 1. Best admin software compounding an already great low Customer cost of ownership. 2. Ceo Charlie is a low key maestro of business dev, customer sat, and technology/engineering😅 A true triple threat.

[@sirus312]

He is unstoppable!

[@julielaw520]

Good Call! The stock is at 65 today. Still think the valuation is good to start a position? Thank you!

[@chipstockinvestor]

Hi Julie, we did a quick review on where PSTG is at in this video, did you see this one? kzbin.info/www/bejne/eWK8lGumgLmlqK8

[@julielaw520]

@@chipstockinvestor oh yes, I’ll go back and revisit that, thank you for the response!

[@julielaw520]

Pure Storage at a discount now…

[@sirus312]

@@julielaw520extreme discount now, load before hyperscaler news

[@julielaw520]

$48 today! Do you think you'll update your opinion on purestorage soon? Thanks, Guys!

[@chipstockinvestor]

Thanks Julie! We may get around to PSTG soon, but nothing has really changed since the last video three months ago. Great business. We're happy to be patient.

[@julielaw520]

@@chipstockinvestor I'll have to figure out the P/E and see if its a good buy right now; and of course your opinion on that is welcomed, ha! ThankS!

[@fivedeadlyvenoms1]

(NCAA chant) Kasey! Kasey! (swish!!!) Nobody likes a slow hard drive anymore! Let's GO flash drive! (clap clap, clap clap clap ) Let's GO flash drive! (clap clap, clap clap clap)

[@chipstockinvestor]

lol shall we root for the underdog PureStorage, the NC State of mass storage?? Hopefully this reply ages well...

[@1309gsk]

pstg vS NVIDea? also pstg was recoomened by chaikin

[@chipstockinvestor]

Two very different businesses, so no need to compare them.

[@geordiehawkins7372]

Great insight. Have had it on my watchlist but have not pulled the trigger yet.

[@davidgual93]

Thank you for all the great content you put out there. I only found your channel recently, but I have been eagerly watching every single video since. Regarding Pure Storage, I would like to know whether you agree with current analyst estimates for the coming 2-3 years. I do not suppose you do, since the estimates are rather modest and not really aligned with the AI development explosion story. Plus, valuation-to-growth using these estimates is not appealing to me at all. Thank you in advance!

[@chipstockinvestor]

Hi David, thanks for watching! Did you see the reverse DCF we did on PSTG at the end of the video to figure what the consensus estimates are at these levels?

[@davidgual93]

​@@chipstockinvestor Lightning response! :) You are right to point that out, I must have been lost in my thoughts during that part! I see you estimate future cash flow growth at 12%, which is aligned with the earnings growth estimates I have for the next 3 years. I generally focus my valuations on earnings rather than on cash flow. I understand you might be using the latter because the company works in an industry with high CapEx, which seems to be a popular thing to do. However, I cannot see why this is the case (I am working on it). In any case, is it fair to say you consider a *(P/FCF) / CF Growth* of *25 / 12 = 2,1* attractive? As someone who focuses more on earnings I can only say that the current *PEG = PE / Earnings Growth* of *34,6 / 12 = 2,9* does not look too good to me. Note: I have seen elsewhere a P/CFC of 25 both TTM and FWD for Pure Storage, not the 30 you use. Not sure why that is.

[@davidgual93]

​@@chipstockinvestor I do not know where my last comment went. Considering I put some time into it I am extremely disappointed and I would appreciate an explanation.

[@chipstockinvestor]

@@davidgual93 we're not following exactly what you mean?

[@davidgual93]

​@@chipstockinvestor Nevermind, KZbin must have mistaken my INTJness for a bot. Lesson learnt, will keep a backup copy of my comments in the future. In short: -Forward PE is 34,6 -Next 3 years estimated average EPS growth is 12% -PEG = 34,6/12 = 2,9 -Forward P/FCF is 25,9 (although you use 30) -Your expected FCF growth (FCFg) is 12% -(P/FCF)/FCFg = 25,9/12 = 2,2 I generally focus on earnings multiples, and a PEG of 2,9 for this company seems excessive to me. I wonder if focusing on the FCF multiples I outlined you are able to justify the current price better.

[@NavaAndNeki]

Thank you !!! Im worrying about "the moat" of this company. Pretty easy to replicate the whole business model?

[@chipstockinvestor]

Hardware + software integration at this level is the hardest thing there is to replicate in the IT sector.

[@Walker956]

you guys are blurry.

[@mohammedmudassirshaikh557]

I like pure storage. But I like Netapp more..

[@chipstockinvestor]

What do you like about NetApp? Do share

[@nycesports1995]

Netapp could be the next MU for data storage. They are a partnered with Nvidia on building copilots

[@michaelbishop9157]

@@nycesports1995 as are Pure. NetApp hasn't grown for years and Goldman have them in their top 50 weak balance sheet stocks

[@markrobertdevison1227]

This company has very slow growth for a company in the AI sector.

[@sirus312]

Storage shift to flash hasn’t started. 70-80% still on HDD when that shifts will be a hay day

[@nycesports1995]

sold it for a 104% gain, after I read that Meta had a cluster problem with them and may be looking for some else. Maybe Netapp is better. I hope they fail earnings so I can go back in again lol

[@derekaugust872]

Cool story bro!

[@mojbah-z3u]

thank you. -but your videos is X3 long , toooo long. can you make it shorter and in to the point? thank you