January 8, 2013
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Fusion-io (NYSE: FIO ) got hammered today, down by as much as 10%, after the company got an analyst downgrade.
So what: William Blair dropped its rating from "outperform" to "market perform" and suggested that current estimates may be a little too optimistic. Analyst Jason Ader believes bookings growth is slowing, particularly within the enterprise, and recommends investors "move to the sidelines." Macro concerns continue to weigh on IT spending patterns.
Now what: Enterprise flash continues to see strong adoption, but the PCIe cards that Fusion-io mounts its flash chips on aren't doing as well. Software and OEM partnerships are also under pressure, and Ader's checks indicate slowing growth on those fronts. Meanwhile, viable alternatives are gaining traction, such as Intel's (NASDAQ: INTC ) own PCIe card offerings. The analyst reduced fiscal 2013 revenue estimates from $529 million to $512 million.
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