Editors Note:

There are dozens of cloud companies but only a couple are really seeing growth surges.


New positions are only added on Wednesday and Saturday except in special circumstances.


NTNX - Nutanix Inc - Company Profile

Nutanix is a global leader in cloud software and hyperconverged infrastructure solutions, making infrastructure invisible so that IT can focus on the applications and services that power their business. Companies around the world use Nutanix Enterprise Cloud OS software to bring one-click application management and mobility across public, private and distributed edge clouds so they can run any application at any scale with a dramatically lower total cost of ownership. The result is organizations that can rapidly deliver a high-performance IT environment on demand, giving application owners a true cloud-like experience. Company description from Nutanix.

The company posted a net loss of 39 cents compared to 54 cents in the year ago quarter. Free cash flow rose from $7.1 million to $32.4 million. Revenue rose 44% to $286.7 million while billings rose 57% to $227.4 million. They had 8,870 customers at the end of the quarter, a 65% increase. The number of customers billing more than $1 million a year rose 33% to 541.

In late March Goldman Sachs removed Nutanix from their conviction buy list because of the strong gains. Shares faded with the market but have now begun to rebound.

Earnings May 31st.

Buy June $57.50 call, currently $4.40, initial stop loss $48.65.
Optional position: Sell short June $70 call, currently $1.25, initial stop loss $48.65.
Net debit $3.15.


No New Bearish Plays