Why NetApp, Inc. (NTAP) Went Down On Friday?

We recently published a list of 10 Battered Stocks on Friday. In this article, we are going to take a look at where NetApp, Inc. (NASDAQ:NTAP) stands against other battered stocks on Friday.

The stock market ended the trading week in the green territory, with all major indices gaining more than 1 percent after slipping into the negative territory at intra-day trading following a clash between US President Donald Trump and Ukrainian leader Volodymyr Zelensky at the White House.

Following the televised meeting, the two leaders concluded the encounter without a deal for joint development of mineral resources.

The Dow Jones jumped by 1.39 percent, the S&P 500 surged by 1.59 percent, and the Nasdaq soared by 1.63 percent.

Ten companies bucked a broader market optimism, with three stocks heavily battered by disappointing earnings results, losing more than 20 percent in their valuations.

In this article, we have detailed the reasons behind their weak performance.

To come up with Friday’s worst performers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.

A multi-monitor workstation displaying data-centric services.

NetApp, Inc. (NASDAQ:NTAP)

NetApp, Inc. (NASDAQ:NTAP) fell below the $100 level on Friday, finishing the trading session down by 15.57 percent at $99.81 apiece as dismal earnings performance for the third quarter of fiscal year 2025 disappointed investors.

In its release, NetApp, Inc. (NASDAQ:NTAP) said net income for three months ending January 31, 2025, dropped by 4.4 percent to $299 million from $313 million in the same period a year earlier, while net revenues inched up by 2 percent to $1.64 billion from $1.6 billion in the same period.

Meanwhile, net income for the first nine months stood at $846 million, representing a 21.7-percent increase from the $695 million in the same period a year ago, while net revenues grew by 5 percent to $4.84 billion from $4.6 billion.

Following the results, financial services firm Wedbush lowered its price target for the company to $110 from $120 previously while keeping a ‘neutral’ rating for the company.

Overall, NTAP ranks 4th on our list of battered stocks on Friday. While we acknowledge the potential of NTAP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NTAP but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.