In Transition, Nutanix Sees Adobe as Model
It's been a rocky year for Nutanix (NASDAQ: NTNX), the cloud software and infrasturcture company.
While a number of SaaS stocks have surged over the past year, Nutanix has mostly been slogging through its transition from a hardware company to a cloud-based software and services provider. The stock surged after the company's recent earnings report topped estimates and it provided better-than-expected guidance for its fiscal first quarter, but the stock is still down more than 50% from its peak in 2018, meaning investors may be asking if there are more gains to be had.
Nutanix may be starting to convince the market of the wisdom of its strategy of moving from hardware and appliance sales to a cloud-based subscription business, but skeptical investors may want to look at recent history in the tech world, as a number of companies have made a similar transition. The best example out of all of them may be Adobe (NASDAQ: ADBE), the maker of popular programs like Photoshop and Dreamweaver, which transitioned from selling boxed software to cloud-based access to such programs several years ago.
Source Fool.com
