What happened 

Cloud services specialist Nutanix (NASDAQ:NTNX) trailed the market by a wide margin last month, shedding 24% compared to a 0.4% increase in the S&P 500, according to data provided by S&P Global Market Intelligence.

The slump added to intense volatility for shareholders, who've seen their investment notch as much as a 75% gain in 2018 before falling to a more modest 12% uptick recently.

^SPX Chart

^SPX data by YCharts.

So what

Nutanix announced solid operating results to conclude a strong fiscal year that saw annual sales pass $1 billion in the context of rising profitability. Yet investors were spooked by news that a major potential competitor could be muscling into its territory. Analyst downgrades also contributed to September's decline.

A room full of computer servers.

Image source: Getty Images.

Now what

Aggressive share-price swings should be expected for a high-growth stock like Nutanix, so conservative investors might want to watch this company from the sidelines. For investors who don't mind the volatility, though, this cloud software specialist appears set to continue growing at a more-than-40% rate into its new fiscal year while it takes big steps toward net profitability. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.