NTNX Stock Price Analysis: Shares Experiencing Positive Signals

Several companies are coming up with their recent quarterly earnings and the tech sector seems to have benefited the most. Nvidia (NASDAQ: NVDA), the GPU king, gained almost 24% while Nutanix (NASDAQ: NTNX), a cloud computing company, gained over 16% yesterday. Currently, NTNX stock was trading at $29.79 in premarket at the time of publication.

Cloud Mining May Boost Nutanix Revenues

The company recently came up with their cloud platform dubbed Nutanix Cloud. The cloud service provider currently offers services including hybrid multi-cloud, database modernization, and more. The organization stands against several tech titans including Microsoft (NASDAQ: MSFT), International Business Machine (NYSE: IBM), Amazon (NASDAQ: AMZN) and more.

Although retail is still the primary source for Amazon, Amazon Web Service (AWS) has contributed significantly to the company’s revenue. Last year, it generated around $80 billion via cloud services. The organization was worth around $10 billion in 2006 while it’s sitting atop a trillion dollar market cap today.

Artificial intelligence (AI) has started debates across the globe regarding how it can benefit businesses. Moreover, technology is becoming integral to the cloud industry. DeepMind, a subsidiary to Google, leveraged AI to create a neural network that learned to play video games.

Cloud mining is another growth factor for Nutanix. Regulators across the globe are concerned about the increasing impact of digital assets on the environment. Proof-of-work (PoW) based assets like Bitcoin (BTC) are believed to consume energy worth powering an entire country. Ethereum (ETH) shifted their consensus mechanism from PoW to Proof-of-stake (PoS), reducing greenhouse emissions by over 99%.

NTNX Stock Price Analysis

NTNX stock surged following the earnings release. The price opened 16% above its previous close following the news. The share value is currently maintaining support at $32 while resistance near $28. The company surpassed revenue estimates by over $15.65 million (3.62%) and earnings per share (EPS) by $0.036 (10.02%).

All the mentioned indicators are suggesting an upsurge in forthcoming days. Chop zone underscores an ongoing strong trend meanwhile, the coppock curve is above zero line, highlighting potential buyers’ entry in the market. NTNX stock price has cut across the chande kroll stop, indicating the same.

Businesses Will Potentially Turn Towards Cloud Services

Cloud computing has spread its roots across several markets and is expected to grow at a faster rate. Gaming will potentially be the most significant segment in the market. Video games today have gone super advanced, requiring high end devices to play them. Considering this, gaming companies have started to work on delivering these experiences on mobile devices.

Overall, a majority of markets including healthcare, entertainment, internet of things (IoT) and more will potentially use the technology considering increasing storage demands across different sectors.

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.