The Buzz

All markets and investing news all the time

Stupid Stock Move of the Day! EMC down?

May 24, 2012: 12:21 PM ET

Storage company NetApp (NTAP) is down 13% Thursday, making it the worst performer in the S&P 500. The company announced earnings after the bell Wednesday and its guidance spooked investors. Rival EMC (EMC) has plunged more than 5% on the news as well.

I don't understand the logic behind EMC's fall though. Many tech investors think EMC is gaining market share from NetApp. So the weaker guidance may not be a sign of corporate IT departments cutting back on storage, it's a sign that they may be shifting more to EMC.

A woman calling herself MinervasMomma over on StockTwits seems to think the move makes sense. She tweeted that "$NTAP implied that $EMC was weaker than they." But hedge fund manager Nicholas Pollari appears to agree with me. I also think it's interesting that EMC just acquired Syncplicity, a company that competes with Dropbox in the cloud-based storage market.

Posted in: , ,
Fear & Greed
Sponsored by

To view my watchlist

Not a member yet?

Sign up now for a free account
Stupid Stock Move of the Day
#StupidStock Move of the Day! $FEYE up 7% because of $SNE? Yes. It's a cybersecurity company. But has history of losses and sales misses.
Powered by WordPress.com VIP.
Follow

Get every new post delivered to your Inbox.

Join 242 other followers