Everpure (NYSE: PSTG), the tech company formerly known as Pure Storage, has become a key beneficiary of the artificial intelligence (AI) data center boom. Over the past three years, shares have gained more than 150%. Still, the stock has faced big-time volatility. In nine of Everpure’s last 12 earnings releases, shares have swung up or down by at least 10% the next day. Four of those moves have been to the upside, while five have been to the downside.
After the company’s latest report, Everpure got the short end of the stick, seeing its shares drop by 10% in response. This came even though the company beat estimates and issued better-than-expected guidance.
On the one hand, Everpure is experiencing strong and accelerating growth, having just achieved $1 billion in quarterly revenue for the first time. On the other hand, soaring memory chip prices and strategic shifts are clouding the company’s outlook.
