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Thanks Julie! We may get around to PSTG soon, but nothing has really changed since the last video three months ago. Great business. We're happy to be patient.
The old delayed gratification tactic will allow pstg to sweep in more customers, kudos to Charlie G. Will see if you point out the two other gems pstg has: 1. Best admin software compounding an already great low Customer cost of ownership. 2. Ceo Charlie is a low key maestro of business dev, customer sat, and technology/engineering😅 A true triple threat.
Thank you for all the great content you put out there. I only found your channel recently, but I have been eagerly watching every single video since. Regarding Pure Storage, I would like to know whether you agree with current analyst estimates for the coming 2-3 years. I do not suppose you do, since the estimates are rather modest and not really aligned with the AI development explosion story. Plus, valuation-to-growth using these estimates is not appealing to me at all. Thank you in advance!
Hi David, thanks for watching! Did you see the reverse DCF we did on PSTG at the end of the video to figure what the consensus estimates are at these levels?
@@chipstockinvestor Lightning response! :) You are right to point that out, I must have been lost in my thoughts during that part! I see you estimate future cash flow growth at 12%, which is aligned with the earnings growth estimates I have for the next 3 years. I generally focus my valuations on earnings rather than on cash flow. I understand you might be using the latter because the company works in an industry with high CapEx, which seems to be a popular thing to do. However, I cannot see why this is the case (I am working on it). In any case, is it fair to say you consider a *(P/FCF) / CF Growth* of *25 / 12 = 2,1* attractive? As someone who focuses more on earnings I can only say that the current *PEG = PE / Earnings Growth* of *34,6 / 12 = 2,9* does not look too good to me. Note: I have seen elsewhere a P/CFC of 25 both TTM and FWD for Pure Storage, not the 30 you use. Not sure why that is.
@@chipstockinvestor I do not know where my last comment went. Considering I put some time into it I am extremely disappointed and I would appreciate an explanation.
@@chipstockinvestor Nevermind, TH-cam must have mistaken my INTJness for a bot. Lesson learnt, will keep a backup copy of my comments in the future. In short: -Forward PE is 34,6 -Next 3 years estimated average EPS growth is 12% -PEG = 34,6/12 = 2,9 -Forward P/FCF is 25,9 (although you use 30) -Your expected FCF growth (FCFg) is 12% -(P/FCF)/FCFg = 25,9/12 = 2,2 I generally focus on earnings multiples, and a PEG of 2,9 for this company seems excessive to me. I wonder if focusing on the FCF multiples I outlined you are able to justify the current price better.
sold it for a 104% gain, after I read that Meta had a cluster problem with them and may be looking for some else. Maybe Netapp is better. I hope they fail earnings so I can go back in again lol
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Thank you! This is one of the best investment channels around.
Very strong information as usual
Thanks! Appreciate the watch, even though it isn't a very high interest company. Hope we were able to at least add to your knowledge!
Great insight. Have had it on my watchlist but have not pulled the trigger yet.
Good Call! The stock is at 65 today. Still think the valuation is good to start a position? Thank you!
Hi Julie, we did a quick review on where PSTG is at in this video, did you see this one? th-cam.com/video/C1Yc8pKTrrM/w-d-xo.html
@@chipstockinvestor oh yes, I’ll go back and revisit that, thank you for the response!
Pure Storage at a discount now…
@@julielaw520extreme discount now, load before hyperscaler news
$48 today! Do you think you'll update your opinion on purestorage soon? Thanks, Guys!
Thanks Julie!
We may get around to PSTG soon, but nothing has really changed since the last video three months ago. Great business. We're happy to be patient.
@@chipstockinvestor I'll have to figure out the P/E and see if its a good buy right now; and of course your opinion on that is welcomed, ha! ThankS!
The old delayed gratification tactic will allow pstg to sweep in more customers, kudos to Charlie G. Will see if you point out the two other gems pstg has: 1. Best admin software compounding an already great low Customer cost of ownership. 2. Ceo Charlie is a low key maestro of business dev, customer sat, and technology/engineering😅 A true triple threat.
He is unstoppable!
pstg vS NVIDea? also pstg was recoomened by chaikin
Two very different businesses, so no need to compare them.
Thank you for all the great content you put out there. I only found your channel recently, but I have been eagerly watching every single video since. Regarding Pure Storage, I would like to know whether you agree with current analyst estimates for the coming 2-3 years. I do not suppose you do, since the estimates are rather modest and not really aligned with the AI development explosion story. Plus, valuation-to-growth using these estimates is not appealing to me at all. Thank you in advance!
Hi David, thanks for watching! Did you see the reverse DCF we did on PSTG at the end of the video to figure what the consensus estimates are at these levels?
@@chipstockinvestor Lightning response! :) You are right to point that out, I must have been lost in my thoughts during that part! I see you estimate future cash flow growth at 12%, which is aligned with the earnings growth estimates I have for the next 3 years. I generally focus my valuations on earnings rather than on cash flow. I understand you might be using the latter because the company works in an industry with high CapEx, which seems to be a popular thing to do. However, I cannot see why this is the case (I am working on it).
In any case, is it fair to say you consider a *(P/FCF) / CF Growth* of *25 / 12 = 2,1* attractive? As someone who focuses more on earnings I can only say that the current *PEG = PE / Earnings Growth* of *34,6 / 12 = 2,9* does not look too good to me.
Note: I have seen elsewhere a P/CFC of 25 both TTM and FWD for Pure Storage, not the 30 you use. Not sure why that is.
@@chipstockinvestor I do not know where my last comment went. Considering I put some time into it I am extremely disappointed and I would appreciate an explanation.
@@davidgual93 we're not following exactly what you mean?
@@chipstockinvestor Nevermind, TH-cam must have mistaken my INTJness for a bot. Lesson learnt, will keep a backup copy of my comments in the future.
In short:
-Forward PE is 34,6
-Next 3 years estimated average EPS growth is 12%
-PEG = 34,6/12 = 2,9
-Forward P/FCF is 25,9 (although you use 30)
-Your expected FCF growth (FCFg) is 12%
-(P/FCF)/FCFg = 25,9/12 = 2,2
I generally focus on earnings multiples, and a PEG of 2,9 for this company seems excessive to me. I wonder if focusing on the FCF multiples I outlined you are able to justify the current price better.
(NCAA chant)
Kasey!
Kasey!
(swish!!!)
Nobody likes a slow hard drive anymore!
Let's GO flash drive! (clap clap, clap clap clap )
Let's GO flash drive! (clap clap, clap clap clap)
lol shall we root for the underdog PureStorage, the NC State of mass storage?? Hopefully this reply ages well...
Thank you !!! Im worrying about "the moat" of this company. Pretty easy to replicate the whole business model?
Hardware + software integration at this level is the hardest thing there is to replicate in the IT sector.
I like pure storage. But I like Netapp more..
What do you like about NetApp? Do share
Netapp could be the next MU for data storage. They are a partnered with Nvidia on building copilots
@@nycesports1995 as are Pure. NetApp hasn't grown for years and Goldman have them in their top 50 weak balance sheet stocks
sold it for a 104% gain, after I read that Meta had a cluster problem with them and may be looking for some else. Maybe Netapp is better. I hope they fail earnings so I can go back in again lol
Cool story bro!
This company has very slow growth for a company in the AI sector.
Storage shift to flash hasn’t started. 70-80% still on HDD when that shifts will be a hay day
thank you. -but your videos is X3 long , toooo long. can you make it shorter and in to the point? thank you
Just listen at 2x speed. I'd rather have a more in-depth analysis than a brief one.