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If You Invested $1000 in NetApp a Decade Ago, This is How Much It'd Be Worth Now
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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in NetApp (NTAP - Free Report) ten years ago? It may not have been easy to hold on to NTAP for all that time, but if you did, how much would your investment be worth today?
NetApp's Business In-Depth
With that in mind, let's take a look at NetApp's main business drivers.
NetApp provides enterprise storage as well as data management software and hardware products and services. The San Jose, CA based company assists enterprises in managing multiple clouds environments, adopting next-generation technologies like artificial intelligence (AI), Kubernetes, and contemporary databases, and navigating the complexity brought about by the quick development of data and cloud usage.
NetApp reported revenues of $6.27 billion in fiscal 2024. The company derived 90% of revenues from the Hybrid Cloud segment and the remaining from the Public Cloud Segment.
Hybrid Cloud offers a portfolio of storage management and infrastructure solutions that assist customers to transforming their traditional data centers into modern data centers with the help of cloud. Under this segment, the company offers intelligent data management software which includes NetApp ONTAP, NetApp Snapshot, NetApp SnapCenter Backup Management, and NetApp Astra, etc.
Customers using NetApp Fabric Attached Storage (FAS) Arrays benefit from a combination of capacity and performance when using either hybrid-flash or disc drive configurations. FAS systems are ideal for secondary storage targets for disaster recovery, backup, and tiering. The Hybrid Cloud also offers storage solution which includes NetApp All-Flash FAS (AFF A-Series), NetApp QLC-Flash FAS (AFF C-Series) and NetApp StorageGRID etc.
Public Cloud offers a portfolio of products delivered primarily as-a-service, along with associated support. This portfolio includes cloud storage and data services and cloud operations services.
The company’s cloud operations services include NetApp Cloud Insights, Spot by NetApp and Instaclustr platform. Apart from these, NetApp also offers support, consulting and training services. The company markets and distributes products worldwide through a direct sales force, and an ecosystem of partners, including the leading cloud providers.
On a geographical basis, NetApp generated 51% of revenues in fiscal 2024 from the Americas (the United States, Canada and Latin America), 34% from Europe, Middle East and Africa (EMEA) and the remaining 15% from Asia Pacific (APAC).
NetApp faces stiff competition from companies like HP, Dell, IBM and Oracle.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in NetApp ten years ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in August 2014 would be worth $3,203.08, or a 220.31% gain, as of August 28, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 181.27% and the price of gold went up 88.22% over the same time frame.
Analysts are forecasting more upside for NTAP too.
NetApp’s performance is being driven by demand across the all-flash and cloud storage portfolio. All-Flash Array Business’ annualized revenue run rate (ARR) was $3.6 billion, up 17% year over year in the fourth quarter. Fiscal 2025 revenues are estimated in the band of $6.45-$6.65 billion with revenue growth expected in each quarter. We expect current quarter revenues to be $1.53 billion, up 6.8% from prior year figure. The company expects its expertise in tackling critical customer priorities, such as business analytics, AI, cloud transitions, data security and application modernization to drive expansion. Management also expects Public Cloud revenues to return to steady growth in fiscal 2025. Robust share repurchases and dividends are noteworthy. Soft macroeconomic environment and price increases on NAND from suppliers are concerning.
The stock is up 8.61% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2024. The consensus estimate has moved up as well.
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If You Invested $1000 in NetApp a Decade Ago, This is How Much It'd Be Worth Now
How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in NetApp (NTAP - Free Report) ten years ago? It may not have been easy to hold on to NTAP for all that time, but if you did, how much would your investment be worth today?
NetApp's Business In-Depth
With that in mind, let's take a look at NetApp's main business drivers.
NetApp provides enterprise storage as well as data management software and hardware products and services. The San Jose, CA based company assists enterprises in managing multiple clouds environments, adopting next-generation technologies like artificial intelligence (AI), Kubernetes, and contemporary databases, and navigating the complexity brought about by the quick development of data and cloud usage.
NetApp reported revenues of $6.27 billion in fiscal 2024. The company derived 90% of revenues from the Hybrid Cloud segment and the remaining from the Public Cloud Segment.
Hybrid Cloud offers a portfolio of storage management and infrastructure solutions that assist customers to transforming their traditional data centers into modern data centers with the help of cloud. Under this segment, the company offers intelligent data management software which includes NetApp ONTAP, NetApp Snapshot, NetApp SnapCenter Backup Management, and NetApp Astra, etc.
Customers using NetApp Fabric Attached Storage (FAS) Arrays benefit from a combination of capacity and performance when using either hybrid-flash or disc drive configurations. FAS systems are ideal for secondary storage targets for disaster recovery, backup, and tiering. The Hybrid Cloud also offers storage solution which includes NetApp All-Flash FAS (AFF A-Series), NetApp QLC-Flash FAS (AFF C-Series) and NetApp StorageGRID etc.
Public Cloud offers a portfolio of products delivered primarily as-a-service, along with associated support. This portfolio includes cloud storage and data services and cloud operations services.
The company’s cloud operations services include NetApp Cloud Insights, Spot by NetApp and Instaclustr platform. Apart from these, NetApp also offers support, consulting and training services. The company markets and distributes products worldwide through a direct sales force, and an ecosystem of partners, including the leading cloud providers.
On a geographical basis, NetApp generated 51% of revenues in fiscal 2024 from the Americas (the United States, Canada and Latin America), 34% from Europe, Middle East and Africa (EMEA) and the remaining 15% from Asia Pacific (APAC).
NetApp faces stiff competition from companies like HP, Dell, IBM and Oracle.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in NetApp ten years ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in August 2014 would be worth $3,203.08, or a 220.31% gain, as of August 28, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 181.27% and the price of gold went up 88.22% over the same time frame.
Analysts are forecasting more upside for NTAP too.
NetApp’s performance is being driven by demand across the all-flash and cloud storage portfolio. All-Flash Array Business’ annualized revenue run rate (ARR) was $3.6 billion, up 17% year over year in the fourth quarter. Fiscal 2025 revenues are estimated in the band of $6.45-$6.65 billion with revenue growth expected in each quarter. We expect current quarter revenues to be $1.53 billion, up 6.8% from prior year figure. The company expects its expertise in tackling critical customer priorities, such as business analytics, AI, cloud transitions, data security and application modernization to drive expansion. Management also expects Public Cloud revenues to return to steady growth in fiscal 2025. Robust share repurchases and dividends are noteworthy. Soft macroeconomic environment and price increases on NAND from suppliers are concerning.
The stock is up 8.61% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2024. The consensus estimate has moved up as well.